Pinnacle Activity Ticker
Nuclear Plant Funding
I have been asked many times how do you expect to fund a multi billion dollar company on literaly pennies. So to answer the question per AEHI the funding comes in phases.
Phase 1 requires about $ 100 million to pay for land, water, engineers, lawyers, local applications and NRC approval(COLA) to get the plant site approved at the local and federal levels. This takes about 4-5 years and is generally funded by investors for unregulated companiessuch as AEHI or consumer rate increases for regulated utilities building new nuclear plants.
Phase 2 is after local and NRC approval in which the ~$ 100 million investment creates a piece of approved for a nuclear plant real estate worth~1.5 billion dollars . This is the asset that is used to borrow the $5 to 8 billion to construct and operate the nuclear power plant. No loan payments are expected untill the plant is operating creating about $3 billion per year in profit reliably for 60 years.... making it an attractive loan for most financial institutions.
US regulated utilities are somewhat more constrained as they are generally required to borrow domestically ... unregulated companies like AEHI are not so constrained and actually may be better positioned to find financing in this current economy from international sources. Hence, the strong push by regulated utilities to get the US government to provide loan gurantees to help shore up our shaky financial institutions.
There is no downside to any state or county in this process as many jobs are created and local economies benifit in all phases.
For our investors, we have a ~$ 1.5 billion asset after phase 1 and ~$ 10 billion asset after phase 2. In either case, it is very profitable for our investors.
So I hope this information from the company helps, and which end would you like to buy in on?
TnT
Join Now! It's Free
Test Your Investing IQ
Stock Challenge
| 1 | ||
| 2 |  | |
| 3 |  | |
| 4 |  | |
| 5 |
Do you know how smart of an investor you are?
Related Articles & Blogs
Community Talk
Re: Nuclear Plant Funding
Here's a bit of info on how Southern is using the gov't gurantees in financing their new nuclear plants in Georgia:
http://www.southerncompany.com/nuclearenergy/presskit/docs/SouthernCoNuc...
And ... Obama says there's more coming:
Obama announces loan guarantees for two nuclear reactors
Washington (CNN)
-- President Obama announced $8.3 billion in loan guarantees Tuesday
for two nuclear reactors to be built in Burke County, Georgia.
No new nuclear power plants have been built in the United States in three decades.
The
new reactors are to be part of an expansion of an existing nuclear
facility near Augusta, Georgia, operated by Atlanta-based Southern Co.
The
loan guarantees will help create 3,500 on-site construction jobs and
850 permanent operations jobs, administration officials claimed. The
reactors will help provide power to over 550,000 homes and 1.4 million
people, it said.
"This is only the beginning," Obama said during
a visit to an International Brotherhood of Electrical Workers training
facility in Lanham, Maryland. "We'll continue to provide financing for
clean energy projects ... across America."
The president
acknowledged that construction of new nuclear facilities will meet with
some political resistance. Nuclear development has traditionally been
opposed by more progressive elements of the Democratic Party.
"The
fact is, even though we have not broken ground on a new nuclear plant
in nearly 30 years, nuclear energy remains our largest source of fuel
that produces no carbon emissions," Obama said.
"To meet our
growing energy needs and prevent the worst consequences of climate
change, we'll need to increase our supply of nuclear power. It's that
simple."
At the same time, the president argued, traditional
Republican proponents of nuclear power should acknowledge that
comprehensive energy legislation is needed to help provide incentives
making clean energy more profitable.
Any new nuclear facilities, he promised, will "be held to the highest and strictest safety standards."
Obama's
proposed fiscal year 2011 budget triples loan guarantees for nuclear
power plants to over $54 billion, the White House noted.
CNN's Suzanne Malveaux and Alan Silverleib contributed to this report.
Re: Nuclear Plant Funding
I hope my reply is adequate.
TnT
Re: Nuclear Plant Funding
If you had CAREFULLY read what I wrote, you would have seen that the information came from AEHI, not me. So if you want to talk about education then lets start with the CEO Mr Don Gillispie.
Donald Gillispie, a past nuclear utility senior executive, has served as President, CEO and Board member of AEHI since inception. Mr Gillispie additionaly is owner of Grace Glens Consulting , a technical management consulting company, which advises senior utility executives on managing comercial nuclear power companies, and other non nuclear power companies. Mr Gillispie helped start up a technical management consulting bussiness, INPO, in Atlanta Ga and a nuclear operating company , NMC, in Hudson, Wi which operates six nuclear power plants with 5000 employees. NMC was awarded best in class for inovation by Forbes Magazine in 2001.
Board Members
John Franz, a past Vice President of a nuclear utility, has served on the Board of AEHI since Feburary 2007. He is currently employed by 14 nuclear power clients for consulting services, including practice INPO Accreditation Boards and membership on Nuclear Saftey Review Boards. Mr Franz has 36 years of diverse experience in the licensing, start-up, operation, and management of nuclear power plants. Most notably, he led a struggling plant to top NRC and INPO ratings,as well as directed a plant restart effort following a mandated NRC shutdown.
Greg Kane, a past nuclear plant manager, has served as Vice President and Board member of AEHI since inception.MrKane currently is President of Eagle "1" Nuclear Assistance, a consulting firm that provides or has provided, management consulting to over twenty five nuclear programs. Mr Kane previously held the position of General Manager at Virginias twin unit PWR North Anna Nuclear Plant, where he was responsible for safe operation and budgeting of the station in all aspects of activities. Under Mr Kane's leadership, the plant achieved top industry evaluation scores and one of the lowest power production cost's in the United States.
James Taylor, a former Chief Operating Officer of the NRC, has served on the Board of AEHI since inception.During his career, he was recognized by both President's Bush and Clinton with Presidential Distinguished Executive Rank Awards in 1989 and 1994.Mr Taylor additionally held the position of CFO of the NRC. and has served on Nuclear Safety Oversight Committes at nine utilities operating nuclear power plants.
I can go on with Leon Eliason, Ken Strahm,Sr, Ralph Beedle, Mike Sellman, Director, Rick Bucci, Jennifer Ransom Senior Vice President,all with impecable credentials.
Financially the CEO and the Board do not take a salary and I don't think any more is any bussiness of your's or mine. And politically all the investor needs to know is the political climate which is now in favor of nuclear power for the first time in 30 years, mostly since the public opinion has shifted because of fossil fuel pollution and cost.
Now you want to know reality, it has not been easy where in my opinion with the small minded anti-s , where logic and reason seems to confuse them to no end. But Mr.Gilispie has prevailed and won the vote 9 to 2 for rezoning but it will still be a battle against ignorance of the anti-s in my opinion. Wal-Marts pop up, nuclear power plants take planning and much dedication. Again I have to go with the over 200 years experience the CEO and Board have between them so I accept what THEY said about the funding. If you don't thats between you and your political persusaion.
In response to Iowatrucker.
TnT.
Re: Nuclear Plant Funding
What is your background...educationally, financially, and politically...to make this a reality both in terms of financial largesse and reality???
If it was as easy as you seem to indicate, why are there not privately funded nuclear-powered plants popping up?
iowatrukker
iowatrukker