Institute for Public Accuracy
980 National Press Building, Washington, D.C. 20045
(202) 347-0020 * *

The New York Times reports today: "In a speech in Lanham, Md., Mr. Obama 
announced government approval of an $8.3 billion loan guarantee to help 
the Southern Company build two reactors in Burke County, Georgia, near 

     A former senior policy adviser to the U.S. Secretary of Energy and 
now a senior scholar at the Institute for Policy Studies, Alvarez just 
wrote the piece "Nukes Aren't the Answer," which states: "Wall Street 
has refused to finance nuclear power for more than 30 years, rendering 
new construction impossible. The Obama administration, in a move to 
placate Senate Republicans, proposes to fund new power reactors with 
some $54.5 billion in federal loan guarantees. Because of the way the 
guarantees are structured, the actual loans will be made by the Federal 
Financing Bank out of the U.S. Treasury. Last year, the Government 
Accountability Office estimated that these loans have more than a 50-50 
chance of failing. ... [D]espite Obama's rhetoric about reshaping 
America's energy future, he's asking for a budget that would have the 
Energy Department continue to spend 10 times more on nuclear weapons 
than energy conservation."

     Kamps, a specialist in nuclear waste at Beyond Nuclear, said today: 
"President Obama's nuclear loan guarantee now forces American taxpayers 
to bear 80 percent of the financial risks for two proposed new 
Toshiba-Westinghouse so-called 'Advanced Passive (AP) 1000' atomic 
reactors. The Japanese export bank will bear the financial risks for 
much of the rest. This leaves Southern Nuclear Company of Georgia free 
to engage in a 'moral hazard' with a radiological risk twist, given the 
major safety design flaw with the reactor's shield building identified 
by the U.S. Nuclear Regulatory Commission just last October. Thus, 
taxpayers are damned if they do, damned if they don't. If the reactors 
go belly-up, taxpayers will be on the hook for many billions in loan 
repayment. If the flawed design actually gets built and operates, 
communities downwind and downstream will be at radiological risk from 
tornadoes, earthquakes, hurricanes, or crashing airliners releasing 
catastrophic amounts of deadly radioactivity from the vulnerable reactors."

For more information, contact at the Institute for Public Accuracy:
Sam Husseini, (202) 347-0020, (202) 421-6858; or David Zupan, (541)