Nuclear and Fossil Fuel Steam Generation of Electricity: Differences and Similarities

An econometric analysis of the production technology and generating costs of nuclear power, as well as the efficiency and equity of the nuclear rate structure, is presented. Given the growing concern regarding the greenhouse effect, it is likely that there will be increasing pressure on utilities to seek alternatives to fossil fuels. The findings of the analysis will help to evaluate properly the nuclear alternative. It is demonstrated that nuclear power - minus some of the regulatory and politically determined costs, such as licensing delays, retrofitting, and handling of plant disallowances and cancellations - can be very competitive with fossil-fuel generation costs. Current federally-mandated clean air compliance costs with possible future extensions into the areas of greenhouse gasses and toxic metals, are likely to make capacity additions with fossil-fueled plants unattractive relative to nuclear power.