GE's Political Influence

A few months back the U.S. Department of Energy decided it would not guarantee a loan for USEC to expand a centrifuge uranium enrichment plant in Ohio. Not only did this cost the citizens of Ohio more than 2000 jobs, but it came as a bit of a surprise since the U.S. imports 80% of its reactor fuel. It is especially curious since 35% of the worlds enrichment facilities will be rendered obsolete, by 2017, due to age and old technology. It seems like this would be a great investment considering that no taxpayer money was needed, just a guarantee on a private loan.

With 53 new nuclear reactors currently being built worldwide, one has to ask; why the Dept. of Energy would help eliminate jobs, increase foreign energy dependency, and prevent a U.S. based company from effectively competing in a growing marketplace. The answer has now become clear. Once again, General Electric has flexed its political influence.

See, GE has a different and potentially more profitable way to enrich uranium. They’re focused on a laser technology which is supposedly more efficient. The problem is that this technology is yet to be proven and has failed to provide results several times since its inception in the early 1980’s. Even if it proves to be everything promised, it still baffles the mind why the government would prevent USEC from participating in the marketplace? General Electric has already said that it would apply for federal loan guarantees to help finance the building of its laser plant. I wonder if the D.O.E. will approve that application?

Oh, by the way, GE has spent $19M YTD on lobbying efforts.

Department of Energy makes their position on Nuclear Power Clear

USEC said the U.S. Department of Energy would not proceed with USEC's application for a loan guarantee to complete the construction of the American Centrifuge Plant in Piketon Ohio. USEC has a very efficient technology for enriching uranium. With the DOE's decision, the company said it is now forced to initiate steps to demobilize the project. This will mean more job losses for Ohio and gives us a clear picture of the DOE’s position on Nuclear Power.

Personally, I cannot fathom how this decision supports the clean and green mantra of the current administration. It isn’t like they are giving them the money. Their only guaranteeing the loan.