People concerned about the costs of a nuclear accident need to know which protection a larger insurance number describes. The Nuclear Regulatory Commission's December 30, 2016 final rule raised required primary coverage from $375 million to $450 million, effective January 1, 2017. This January 2 retrospective concerns that recent change, not a new holiday announcement. [2016-31368]
The requirement covers reactors licensed to operate, designed to generate electricity and rated at least 100,000 electrical kilowatts. A qualifying combination at one site counts as one reactor for this assessment: each unit must be rated from 100,000 through 300,000 electrical kilowatts, with combined capacity no greater than 1,300,000. The amount therefore cannot simply be multiplied by every unit at every facility. [2016-31368]
An earlier NRC final rule, published in April 2010, had raised the same primary layer from $300 million to $375 million. It described the adjustment as ministerial and tied it to available insurance. The 2016 action again follows the statutory requirement to use the maximum private coverage available at reasonable cost and on reasonable terms. These are two stages of one regulatory history, not independent assessments of public safety. [2016-31368][2010-7394]
Primary coverage is only part of the financial structure. The operative rule also includes secondary protection through an industry retrospective insurance plan, with limits on deferred charges. More primary insurance does not establish that all accident losses would be compensated. The useful public-interest distinction is between increasing an identified source of financial backing and proving that the entire compensation system is adequate. [2016-31368]
Source documents
- Increase in the Maximum Amount of Primary Nuclear Liability Insurancehttps://www.govinfo.gov/content/pkg/FR-2016-12-30/html/2016-31368.htm
- Increase in the Primary Nuclear Liability Insurance Premiumhttps://www.govinfo.gov/content/pkg/FR-2010-04-02/html/2010-7394.htm