Reply #5: About the Price-Anderson Act [View All]

[enough]

From Wikipedia

http://en.wikipedia.org/wiki/Price%E2%80%93Anderson_Nuclear_Industries_Indemnity_Act


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Power reactor licensees are required by the act to obtain the maximum amount of insurance against nuclear related incidents which is available in the insurance market (as of 2011, $375 million per plant). Any monetary claims that fall within this maximum amount are paid by the insurer(s). The Price-Anderson fund, which is financed by the reactor companies themselves, is then used to make up the difference. Each reactor company is obliged to contribute up to $111.9 million per reactor in the event of an accident with claims that exceed the $375 million insurance limit. As of 2011, the maximum amount of the fund is approximately $12.22 billion ($111.9m X 104 reactors) if all of the reactor companies were required to pay their full obligation to the fund. This fund is not paid into unless an accident occurs. However, fund administrators are required to have contingency plans in place to raise funds using loans to the fund, so that claimants may be paid as soon as possible. Actual payments by companies in the event of an accident are capped at $17.5 million per year until either a claim has been met, or their maximum individual liability (the $111.9 million maximum) has been reached. <2><3>

If a coverable incident occurs, the Nuclear Regulatory Commission (NRC) is required to submit a report on the cost of it to the courts and to Congress. If claims are likely to exceed the maximum Price-Anderson fund value, then the President is required to submit proposals to Congress. These proposals must detail the costs of the accident, recommend how funds should be raised, and detail plans for full and prompt compensation to those affected. Under the Act, the administrators of the fund have the right to further charge plants if it is needed. If Congress fails to provide for compensation, claims can be made under the Tucker Act (in which the government waives its sovereign immunity) for failure by the federal government to carry out its duty to compensate claimants.

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Two things that stand out here:

1) The 12 billion dollar fund does not exist. It "is not paid into until an accident occurs."

2) Judging from paragraph two above, all decisions about who is going to pay and how are made by the President and Congress AFTER THE FACT of an accident. This does not give me much confidence that payments for damages will be conducted rationally or fairly.


The entire system looks like a sham, not a serious effort to deal with the reality of the potential problem.