Usec joins loan guarantee bidders

[Usec, Reuters 15 June] Companies hoping to build nuclear power plants in the USA have asked the Department of Energy to increase the portion of government-guaranteed project loans to 100% from 90% originally proposed in the Energy Policy Act 2005. The final figure should be decided late this year. Some $9 billion could be available to guarantee up to 90% of a project's debt, as long as that debt does not exceed 80% of the total project cost. The measure is meant to encourage investment in new low-carbon power generation projects. However, Usec, a uranium enrichment company, has put forward its American Centrifuge plant as a possible 'pilot' loan guarantee project. "In addition to helping Usec fund the plant's construction, the experience gained could assist utilities later who apply for loan guarantees," said Usec President and CEO John Welch.