A Comprehensive Financial and Economic Assessment of Future Iowa Baseload Generation in a Carbon-Constrained Environment

Fri Feb 01 15:24:00 EST 2013
By Scott Bloomberg, Dr. Anne E. Smith, Edward Kee, et al.

In this report, prepared for MidAmerican Energy Company, a NERA team led by Vice President Scott Bloomberg evaluated the financial and economic consequences associated with a deployment of either nuclear small modular reactors (SMR) or natural gas combined cycle in the state of Iowa. Key financial and economic impacts included present value revenue requirements, electricity rates, Iowa employment, and Iowa disposable income. NERA's project team -- which also included Senior Vice Presidents Dr. Anne E. Smith and Dr. W. David Montgomery, Vice President Edward Kee, and Consultant Sebastian Mankowski -- evaluated key risks and uncertainties such as natural gas supply, economic growth, and environmental policy in performing the economic analysis. The team also determined break-even nuclear SMR capital costs for each scenario. Key findings included that a nuclear SMR deployment could be a cost-effective choice for MidAmerican's customers compared to a deployment of natural gas combined cycle over the anticipated 60-year life of a nuclear SMR facility, and nuclear SMR deployment could result in considerably greater Iowa economic development benefits than natural gas combined cycle deployment based upon positive impacts on Iowa employment and Iowa gross state product.