Ralph R. Mabey, trustee in the Chapter 11 bankruptcy proceedings of Cajun Electric Power Co-op., has entered into an amended asset-purchase agreement with Louisiana Generating LLC for the purchase...
Nuclear Decommissioning Trust Funds: Rethinking the Approach
back in the 1980s, and reportedly found the insurance industry unenthusiastic about underwriting the risk because of a moral hazard pitfall.
Further effort is required to estimate the insurance parameters. The magnitude of any given loss event should be relatively small compared to the underwriting and loss absorption capacity of the property/liability insurance industry. Various institutional arrangements like the insurance pools that have been developed for nuclear power will likely provide instructive precedents. The NRC's April 8 Federal Register notice seems to indicate that it will encourage putting some new assurance mechanism in place. t
Donald Korn, a chartered financial analyst, heads a management consulting firm, DHK Associates, in Los Altos, CA. The author gratefully acknowledges the helpful comments of Zvi Bodie (Boston University), Geoffry Rothwell (Stanford University), and Jack L. Treynor (president of Tregnor Capital Management, Inc.). Any errors of ommission or commission remain the responsibility of the author.
Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.