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Nuclear Energy Critical to Reliable U.S. Energy Supply
Nuclear energy produces electricity for one in five U.S. homes and businesses. The 104 nuclear power plants in 31 states have made tremendous efficiency gains over the past dozen years, increasing their electricity production by one-third to 787 billion kilowatt-hours in 2006.

The U.S. Department of Energy, in its energy outlook for 2008, forecasts growth in electricity demand of 1 percent annually through 2030. To satisfy that demand, DOE predicts the United States must increase electricity production by 25 percent—the equivalent of adding about 260 new 1,000-megawatt power plants. DOE’s demand growth projection is a conservative estimate and is below the actual growth rate of the past five decades.

Along with coal-fired power plants, nuclear power plants are the workhorses of the U.S. electricity system, and they can help meet the growth in electricity demand resulting from an expanding U.S. economy and population. However, that is just one of the many benefits of nuclear energy.

Maintaining Supply Diversity
A diverse mix of energy sources enables America to balance the cost of electricity production, availability and environmental impacts to our best advantage. The United States produces electricity from a mix of different fuels. Coal and nuclear energy are the foundation of the nation’s electricity supply system, representing about 50 percent and 20 percent of U.S. electricity supply, respectively. The rest comes from natural gas-fired power plants, hydroelectric dams and small amounts of renewable energy.
This diversity of fuels is one of the great strengths of the U.S. electric supply system. Each source of electricity has unique advantages and disadvantages, and each has its place in a balanced electricity supply portfolio. Natural gas-fired electricity generation has more than doubled since 1990 to 20 percent of all production. Nearly all power plants built over the past 15 years are fueled by natural gas. However, natural gas is subject to significant price fluctuations because it also is used as a heating fuel and in industrial processes and because U.S. production is not keeping pace with demand. Natural gas supplies have tightened considerably, driving up prices. The greater the country’s reliance on natural gas, the greater the likelihood that electricity prices will experience increased volatility in the future.

Such energy supply vulnerabilities were self-evident in August and September 2005, when Hurricanes Katrina and Rita struck the energy-rich Gulf Coast, disrupting natural gas supplies across the nation. “It is clear that when you’re dependent upon natural gas and/or hydrocarbons to fuel your economy and that supply gets disrupted, we need alternative sources of energy,” President Bush said following the disasters. “And that’s why I believe so strongly in nuclear power.”

“I think a lot of people are kind of stuck in the '70s. … I think people haven't caught up with the fact that climate change has changed the whole climate of the environmental debate on this planet. The one technology that is contributing most to reducing greenhouse gases in America today is nuclear energy, and we could do a tremendous amount to increase that,” said Patrick Moore, co-founder of Greenpeace and co-chair, Clean and Safe Energy Coalition.¹

In addition, over-reliance on natural gas could have dire consequences for the nation’s energy security. The vast majority of exporters of natural gas are nations that have proved as unstable over time as America’s sources of imported oil.

By comparison, the uranium fuel for U.S. nuclear plants is abundant, readily available from reliable allies, such as Canada and Australia, and low in cost. The low fuel cost, coupled with industry success over the past 15 years in reducing operating costs, makes America’s 104 nuclear energy plants among the lowest-cost sources of electricity available. Once built, new nuclear power plants would provide the same degree of price stability for consumers.

Prudent energy planning demands a balanced approach—one in which all fuels play an appropriate role. These include coal, nuclear energy, natural gas, hydro and renewables such as solar and wind power.

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