Termination Cost of the Clinch Breeder Reactor Plant Project

In May 1979, GAO concluded that, if Congress chose to terminate the Clinch River Breeder Plant Project at the end of fiscal year 1979, the remaining Federal commitment would have been between $152 and $350 million. The Department of Energy now estimates that, if the Project is terminated as of September 30, 1981, the cost may be between $248 million and $422 million, depending on how the termination is carried out. There may be additional termination costs involved if the utilities and private industry bring suit against the Government for damages they might have incurred in relying on the Government's promise to use its best efforts to carry out the Project. Also, the estimate does not include an allowance for any reimbursement of interest on utility and industry contributions. As of December 31, 1980, sunk costs in the Project totaled about $1 billion, and the estimated additional cost of completing the Project is about $2.2 billion, for a total cost of about $3.2 billion. If Congress wishes to maintain a nuclear option or if it wishes to commit itself to nuclear power as a long-term energy source, a breeder reactor, not necessarily Clinch River, should be constructed and operated to demonstrate the technology. If Congress is unable to agree on an approach for preserving the breeder option, or if it does not wish to do so, it should consider terminating the program. Once terminated, any future decision to restart the program could cost many years of development time and leave the United States with the possible alternative of purchasing breeder reactors from foreign sources if future energy developments indicate a need for the technology.