• Nuclear power plants in the United States are licensed to operate for 40 years. The 40-year license term reflects the amortization period generally used by electric utility companies for large capital investments. It is not based on safety, technical or environmental issues. The Atomic Energy Act of 1954 permits nuclear power plants to renew their operating licenses.
• Nuclear power plants are subject to a rigorous program of Nuclear Regulatory Commission oversight, inspection, preventive and corrective maintenance, equipment replacement, and extensive equipment testing. These programs ensure nuclear plant equipment continues to meet safety standards, no matter how long the plant has been operating. Because these sustained maintenance programs exist, the date that a nuclear plant started operating is not a reliable indication of its age or condition.
• The NRC has renewed the operating licenses of 48 reactors. It is reviewing license renewal applications for 15 reactors and expects to receive applications for 23 more by 2013. These 86 reactors are more than three-quarters of the total number operating in the United States. Most of the remaining 18 reactors are expected to renew their operating licenses as well.
• A company’s decision to renew a plant’s license is fundamentally an economic one. It involves estimates of future electricity demand, the cost of other electricity supply options and the cost of continued operation of the nuclear plant.
• License renewal contributes to the economic stability and employment of the plant commu-nity.

Next Page: "Why Nuclear Plants Have 40-Year License Terms" >>

Pages 1 2 3