The Business Case for Building a New Nuclear Plant in the U.S.

摘要

Sustained economic performance by a nuclear plant generates a significant amount of cash for its owner. This cash becomes available for other investments including additional power generating assets. What better investment can a successful nuclear utility make than in a new nuclear plant? Of course, one must make the corresponding business case. A pro forma is developed and this provides a forecast of revenue, costs, the resulting cash flow, and, more importantly, the positive effect on the value of the owner's company as reflected in its stock price. The capital cost of the plant represents not only the single biggest cost but also a significant outflow of cash. Central to establishing the business justification then is the capital cost and how the resulting pro forma compares with that of other investments.