Westinghouse files for bankruptcy, in a blow to nuclear power industry


Westinghouse files for bankruptcy, in a blow to nuclear power industry Westinghouse, one of the most storied names in the nuclear energy business, filed for bankruptcy Wednesday, dealing a blow to the nuclear power industry and raising questions about the fate of four reactors under construction in the United States. The filing also ends the marriage of Toshiba and Westinghouse, one of a handful of nuclear contractors left worldwide. When the Japanese giant — maker of products as diverse as medical devices and home appliances — bought the Westinghouse nuclear business in October 2006, it declared “the dawn of a new era for nuclear energy.” Together, the companies would make a “powerful combination,” Toshiba said. A decade later, that combination has melted down. Toshiba has written off more than $6 billion in losses connected to its U.S. nuclear business, citing accounting problems, delays and cost overruns. And it has pulled back from new nuclear projects under discussion in India and Britain. Westinghouse had claimed that its new AP1000 model reactor had passive technology and modular design that was safer, cheaper and faster to build. Many U.S. lawmakers and nuclear industry boosters said the AP1000 could augur in a “nuclear renaissance” in the United States. Currently, the Vogtle project is $1.8 billion, or 29 percent, above budget and three years behind schedule. Angry about the delays and cost overruns, the owners of the nuclear plants filed claims against Westinghouse. A settlement was reached, but the legal battles are likely to restart. Both South Carolina and Georgia allow utilities to charge ratepayers for power-plant construction still in progress. The United States relies on nuclear energy to provide about 20 percent of its electricity needs. Yet the 100 U.S. reactors, with an average age of 35, are getting old. Few nuclear contractors, many state-owned, can replace them. See https… http://bit.ly/2nyiNEd

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