Why Nuclear Power, Once Cash Cow, Now Has Tin Cup

A decade ago, nuclear power plants in the U.S. were cash cows. Now more than half of them are bleeding cash, knocked from profitability by the shale-gas glut that’s tanked electricity prices. Five nuclear plants were closed prematurely in the past five years, and more are on the chopping block. The industry used to look down on the subsidies needed by its clean-energy rivals, wind and solar power. Now some states are offering subsidies to nuclear plants similar to the ones that wind and solar generators -- whose costs have plunged -- are outgrowing. The trend has implications not just for America’s future power supply but for global efforts to combat climate change.

New York, in August 2016, approved as much as $500 million a year in extra payments to keep four reactors operating for another 12 years. Illinois in December approved about $235 million worth of annual subsidies to rescue two plants. Legislators in Connecticut and Ohio have considered state support. Nuclear plant owners have begun advocating for help in Pennsylvania and New Jersey. Without state intervention, plants have closed or are scheduled to close prematurely in California, Massachusetts, Michigan, Nebraska, New Jersey, Pennsylvania, Vermont and Wisconsin.