Max Obuszewski is both inaccurate and misleading in his complaints about Rep. Steny H. Hoyer's support for the new Calvert Cliffs reactor ("Readers Respond," July 6).
It is untrue that "the insurance companies refuse to issue policies for nuclear power plants." There is a consortium of insurance companies, the American Nuclear Insurers, which provides the insurance mandated by the Price-Anderson Act, which requires the owner of each reactor to carry $110 million of insurance to cover the clean-up and liability costs of an accident at any other reactor in the U.S. (if a company owns multiple reactors, it must carry that multiple of $110 million). This insurance program fully paid the costs associated with the Three Mile Island accident in 1979. Price-Anderson is often erroneously called a federal subsidy to the nuclear power industry, without noting that the first $11 billion-plus in costs (from the insurance on 104 reactors) would be borne by the industry before any federal money is expended.
One of the primary reasons that financing for new reactors is difficult to obtain is that capricious actions on the part of anti-nuclear activists can stop a construction project after billions have been spent, but before any electricity is produced. This has happened several times, and is among the most important reasons for the loan guarantees. Federal loan guarantees are also available for renewables, which, by the way, also seem to need them.