Japan's Nuclear Power Plants

"Power Companies Borrow Record in Loans as Cost of Fuel Jumps" talks about the troubles of Japan's investor-owned utilities.

Tokyo Electric Power Co., Japan’s largest utility, and its peers are facing lower profit margins as the shutdown of Japan’s atomic plants after the world’s worst accident since Chernobyl has forced the utilities to burn more natural gas and coal to meet demand. ...

There were no bond sales announced by nuclear plant operators in Japan since the quake, Bloomberg data show. The extra yield investors demand to own power company debt instead of similar-maturity government notes soared to a peak of 202 basis points on June 29, from 12 basis points a day before the disaster, according to Bank of America Merrill Lynch data.

The spread narrowed to 39 basis points on Oct. 5, following Tokyo Electric’s win of state support to help compensate Fukushima victims on July 28. ...

The March 11 disaster triggered explosions at the Fukushima plant operated by Tokyo Electric, contaminating soil, waters and forests with radiation. Since then, reactors that were stopped for maintenance remain shut amid government- mandated tests to assess whether the plants can withstand strong quakes, tsunamis or a loss of power to cooling systems.

As of Oct. 6, only 10 of the country’s 54 nuclear reactors were generating power, according to Japan Nuclear Technology Institute data.

Should the utilities bear the cost of the nuclear plant shutdowns?

Duke Energy's Coal Gasification Plant

Daniels: Duke Energy Should Underwrite Edwardsport Plant says:

Utility Company Duke Energy wants customers to underwrite $920 million in over budget expenses at its Edwardsport plant.

The Indiana Utility Consumer Counselor's Office said Duke was unqualified to build the plant and should be held responsible for going over budget, 6News' Norman Cox reported.

Indiana Gov. Mitch Daniels said he supports the recommendation and said he just wants to see the plant finished.

"I just want to see it there, using Indiana coal, paying Hoosiers, as opposed to people in other states paying for the energy we need," Daniels said.

Upon completion, Edwardsport will be the largest coal gasification plant in the world.

The plant will process Indiana coal into cleaner-burning natural gas which it will burn to produce electricity.

The Consumer Counselor's Office testimony said that Duke essentially botched the construction of the plant because it refused to hire a qualified outside construction manager to build it.

As a result, the plant, which was supposed to cost $1.98 billion, ballooned to $2.9 billion.

This looks bleak for Duke Energy. Can you think of any excuses they might have that would justify putting the entire $2.9 billion in the rate base?