Nuclear_liability

The nuclear industry is the only one that requires a federal law to protect it from civil liability for off-site damages in the event of an accident. Isn't that peculiar? The Nuclear Liability Act, which limits limit the total claimable damages to $75 million. In The U.S. its $10.5 billion.

Moreover, no insurance company anywhere in the world will insure private property against the consequences of a nuclear accident. If you will take the trouble to check your own insurance policy with a magnifying glass, you will see that it has a "nuclear exclusion clause" in it, saying in effect that your coverage is void in the event of a nuclear accident. Isn't that odd?

Some insurance companies boldly advertize that they will insure anything; and so they will -- anything, that is, except for the radioactive contamination of persons or of property brought about by a nuclear accident.
(Text in part from Canadian Coalition for Nuclear Responsibility). Read more here about the origins of the Canadian Nuclear Liability Act.

Excuse Me, But That Nuclear Plant Has Its Hand On Your Wallet By: Gerald Sindell, February 17 2010 (a U.S. article)

One way to think about an important choice you're about to make is to ask, "What's the worst thing that could happen?"

So let's say you're considering putting up a huge solar panel farm in the middle of Georgia. And I mean really huge, like $8 billion huge. The biggest solar farm ever built. Big. Got it? And what's the worst thing you could imagine that could happen? A cloudy day? Rust? A tornado? A plane crashes into it?

Wow. All those things would be pretty bad, no kidding. But for not very much money that gigantic solar farm would be repaired and it would go right back to making cheap power.

Now let's think about putting that same $8 billion into a subsidy for a new nuclear power plant in Georgia. Assuming the only steel mill in the world (in Japan) that can forge the containment vessel has the capacity, the reactor finally gets built and fired up. After a couple of years there are concrete vats of spent nuclear fuel sitting around near the plant, several trillion gallons of water have been used to cool the plant, killing all life in those trillion gallons, and there's a hot nuclear core in the reactor making steam and turning turbines.

Now ask yourself the question. What's the worst thing that could happen? Plane crash, deliberate or accidental? Earthquake? Design flaw? Construction flaw? Operator error? What's the potential damage in dollars? How about $600 billion, according to the Sandia National Laboratory and reported by PublicCitizen.

That $600 billion potential liability would require some pretty amazing insurance policy, don't you think? You might even guess that insurance costs explain why those nuclear plants are so expensive to build and maintain. But you'd be wrong. The nuclear industry is required to maintain a little cooperative that covers up to $10.5 billion of liability. That's it.

So let's summarize: The government gives $8 billion to the Southern Company to build a nuclear power plant. In a worst case scenario, the plant blows up and causes $600 billion in damages. If they don't go bankrupt scraping together the money, the industry puts together their total liability of $10.5 billion. So if you've got out your pad and pencil you might notice there's a bill for $589.5 billion dollars for the rest of the damage.

Guess who pays? Well, if you dig out your handy guide to the laws of the United States you'll find something called the Price-Anderson Act, a temporary measure passed in 1957 to help the nuclear industry get going. Atoms for Peace and all that. The Price-Anderson bill is the one that caps the nuclear industry's liability at $10.5 billion and makes us (that'd be you) liable for the rest.

Without your gracious offer to cover the potential damage from every nuclear plant in the country, there wouldn't have been any nuclear plants in the first place. Imagine removing Price-Anderson. The nuclear industry would need to buy some real insurance and the cost of insurance gets included in the cost of a nuclear watt. Then we would see how the market forces treat the real cost of new nuclear plants. And guess what?

President Obama says we need to build some nuclear plants because otherwise we're going to be letting others get the technology edge in nuclear reactors. Uh, that happened a long time ago. Toshiba bought the energy part of Westinghouse and the big containment vessels are only made in Russia and Hokkaido, Japan.

So what does that $8 billion really buy? A $600 billion liability. And if that sounds good to you, how about a dozen?

Posted By: Gerald Sindell (Email) | February 17 2010 at 11:22 AM

Listed Under: Unintended Consequences

Read more: http://www.sfgate.com/cgi-bin/blogs/gsindell/detail?entry_id=57400#ixzz0gkHHG2I9