Credit Subsidy Costs for New Nuclear Power Projects Receiving Department of Energy (DoE) Loan Guarantees: An Analysis of the DoE's Methodology and Major Assumptions22 September 2011
This white paper, drafted by the US-based Nuclear Energy Institute, states that the US Department of Energy's (DoE) method for calculating subsidy costs does not contain factual support.
The paper states that current methodologies depend mostly on standard assumptions, which inflate and exagerate the subsidy cost to compensate the federal government for the risk taken by providing a loan guarantee.
Use of such standardised methods does not comply with the requirements set in the Federal Credit Reform Act of 1990, which states that the government has to consider all of the cashflows over the term of the loan.
The report points out that in order to calculate the accurate credit subsidy costs the method used for calculation must consider a detailed, project-specific assessment and credit analysis.
Credit Subsidy Costs for New Nuclear Power Projects Receiving Department of Energy (DoE) Loan Guarantees: An Analysis of the DoE's Methodology and Major Assumptions