98-E-0405: Nuclear Issues Proceeding


Opinion 98-7 extended Case 98-E-0405  to further examine the issues relative to subjecting nuclear power to a competitive, market-based environment.  The examination will begin with a collaborative process and may move to litigation on particular issues, if necessary.   Following are the issues raised in the opinion that will be used as a basic agenda for the inquiry; but other pertinent matters may be raised as well:

Market Pricing:   the need to consider unique scheduling requirements, safety, environmental effects, fuel diversity, reliability, etc.

Nuclear Divestiture:   the need to consider transaction   costs, NRC processes and requirements, remaining service lives, impact  shutdown, decommissioning responsibilities, auction procedures,  IRS requirements, etc..

Other Issues:  the need to consider potential impacts on property taxes and local communities, the need for an immediate market test to determine the prudence of increased stranded costs during the transition period,and thereafter, etc.

Opinion 98-7 concluded that the Commission adopted "as a rebuttable presumption the premise that nuclear power should be priced on a market basis to the same degree as power from other sources, and parties challenging that premise bear a substantial burden of persuasion."  The footnote on p. 25 notes that the same presumptive validity is not assigned to divestiture and "... that parties opposing it do not bear the correspondingly augmented burden of persuasion...". 

Commission Documents

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