Nuclear Energy More Economical Than Coal-Fired Plants

Production costs at U.S. nuclear power plants are the lowest they’ve been in over a decade. The Utility Data Institute reports nuclear power production costs are now more economical than any other major reliable electricity source, even coal-fired power plants.

In 1999, production costs (outlays for fuel and operations and maintenance) at nuclear power plants averaged 1.83 cents per kilowatt-hour (kwh), compared to coal at 2.07 cents/kwh and oil-fired plants at 3.18 cents/kwh and natural gas plants at 3.52 cents/kwh.

The average production cost of nuclear power has not been lower than coal produced power since the mid-1980s, when safety improvements caused the nuclear industry to lose the production-cost advantage that it had held for years.

Production costs do not represent the total cost of electricity at nuclear power plants, however, low production costs allow nuclear plants to compete in the electricity marketplace even after capital costs, property taxes and other expenses are added.