Given Americans’ increasing anxiety over made-in-Washington socialism, it’s a wonder that the nuclear power industry has escaped scrutiny for so long. The federal government socializes the risk of investing in nuclear power while pri-vatizing profits. This same formula drove the frenzied speculation that cratered the housing and financial markets. What might it cause with nuclear power?
We got a taste three decades ago. Congress grew infatuated with the promises of nuclear promoters. It overrode the risk assessment of private capital markets, and expanded subsidies for nuclear projects to $0.08 per kilowatt-hour—often more than investors risked or than the power could be sold for. This seduced previously prudent utilities and regulators into a nuclear binge that Forbes in 1985 called “the largest managerial disaster in business history.”
