Tuesday, October 26, 2010

U.S. Nuclear Society in need of loan guarantee

The US Department of Energy says loan guarantee changes are needed if they are to increase the number of nuclear power plants in the country. They help the environment but are rather costly. The government gave an offer of $7.5 billion loan guarantee with an attached fee of $880 million. This shows the government knows this program needs revisions. There has been a halt in developing new nuclear power plants because additional government support is needed. In this example the US needs a loan guarantee instead of a loan because of the expensive price tag. This change in the program because of loan guarantees helps illustrate the indirect form of government helps implement public policy. The US Department of Energy was even brought up in class as an example of loan guarantees even though it is in need of reform.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Nuclear/8107310

Michelle Watkins

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