Greenspan - US should explore nuclear, coal options
Date: 12-Jun-03
Country: USA
Author: Chris Baltimore
But no matter how much the nation diversifies its sources, it will never be free from politically sensitive foreign suppliers like the Middle East, Greenspan told the House Energy and Commerce Committee.
"I think we are committed irrevocably to a global economy," Greenspan said at a House Energy and Commerce Committee hearing to address looming U.S. natural gas shortages. "I don't think we have a choice but to deal in a global economy."
The central bank chief said the United States should expand its ability to import liquefied natural gas from countries like Algeria, Nigeria and Russia to create a "safety valve" that can stabilize natural gas prices, which are double year-ago levels.
Congress should also look at ways to increase energy supplies from nuclear and coal, Greenspan said. The two sources together account for about 70 percent of U.S. supply.
"I think a major endeavor to examine this whole program is where we ought to be," Greenspan said, referring to nuclear and coal industries. "At least look at it rather than dismissing it out of hand," he told lawmakers.
The United States has 103 operating nuclear power plants that produce about 20 percent of domestic energy supply. Some utilities have said they are considering seeking permits to build new plants, but optimism has been tempered by lingering national security and plant safety concerns.
No new U.S. nuclear plants have been built since the 1979 accident at Pennsylvania's Three Mile Island plant, which had a partial meltdown of its reactor core.
Also this week, the U.S. Senate rejected a Democratic attempt to strip from the energy bill some $10.5 billion in loan guarantees to encourage utilities to build new nuclear plants. The Senate is trying to finalize its version of a broad energy bill this week.
Few new U.S. coal plants have been built because of their high emissions of air pollution and fears that the United States will bow to pressure from Democrats and environmentalists to impose costly controls on carbon dioxide emissions.
Virginia Democratic Rep. Rick Boucher pointed out that the nation has enough coal supplies to last about 250 years.
"We have got to find some fuel alternatives and coal is the most obvious candidate," Boucher told Reuters in an interview.
New "clean coal" technology could be used to build new plants "with little environmental effect," Boucher said.
