Tuesday, February 16, 2010

GA Nuclear Power

This morning, President Obama announced that the administration was providing a loan guarantee to Southern Co. to build two nuclear electrical generating plants in Georgia.

So in the interests of "credit where credit is due" we are going to give him the official Rocketsong "atta boy" for doing something right for a change. Then again, even a blind pig finds an acorn now and again.

Also we should note that this is actually a continuation of the existing Bush Administration energy policy.

In general I am of somewhat mixed feelings.

On one hand - the Fed really has no business doing this. Properly this is a function of the States or localities. (I'm not talking about regulation, that's a different subject, I'm talking about ecconomic incentives)

On the other hand - This is not a loan, it is a loan guarantee. Thus there is no actual cost to the taxpayer unless the project goes pear shaped. Thus the government is accepting the risk associated with the project. Since the government is the primary source of risk (via heavy handed regulation) this is somewhat appropriate.

On the Gripping Hand - We sure could use the nukes.

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