The principal findings of the Chicago study demonstrate that future nuclear power plants in the United States can be competitive with either natural gas or coal. Whereas the levelized cost of electricity (LCOE) for coal is $33 to $41 per MWh and $35 to $45 per MWh for gas-fired production, new nuclear plants would have costs of $31 to $46 per MWh once early plant costs are absorbed.

Currently, nuclear power accounts for 20 percent of the nation's energy mix, second only to coal at 50 percent. Natural gas is a close third by meeting 17 percent of America's energy needs. The LCOE is the amount invested to cover operating costs plus annualized capital costs of operating a nuclear generating facility.

"This study shows that nuclear power can be a competitive source of energy production in the future and will help meet our environmental goals," said Deputy Energy Secretary Kyle McSlarrow. "We appreciate the University of Chicago's exhaustive analyses."

Expansion of nuclear power in the United States is a major objective of the Administration's National Energy Policy. In addition, the Department of Energy initiated the Nuclear Power 2010 program, a joint government-industry cost-shared effort involved with identifying sites for new nuclear power plants, developing advanced nuclear plant technologies, evaluating the business case for building new nuclear plants, and demonstrating untested regulatory processes.

The study notes that the principal economic barrier to nuclear power will be the ability to address the elevated costs associated with building and operating the first few nuclear plants. Those early plant costs, which can include "first-of-a- kind" engineering costs and the elevated construction and financing expenses expected for the first U.S. nuclear plants initiated since the 1970's, disappear by the time a third or fourth plant comes online.

The study also notes that the costs estimates for generating in the U.S. compare favorably to the cost of generating nuclear energy worldwide.

This independent study, sponsored by the Department of Energy, was performed by professors and students of the University of Chicago's Department of Economics with support from DOE's Argonne National Laboratory and reflects considerable contact with the investment community, the electric utility industry and other experts. The report is available on the Department of Energy's website at http://nuclear.gov.

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