Issue Background

The Ad Hoc Utilities Group (AHUG), which consists of a majority of nuclear energy generators in the United States, opposes any additional restrictions on the ability to purchase nuclear fuel to power U.S. nuclear reactors. Such restrictions risk additional premature plant closures across the country, weakening the U.S. nuclear industry and, in turn, our national security. AHUG welcomes President Trump’s decision not to impose tariffs or quotas on uranium in the Section 232 investigation as well as the Department of Energy’s efforts to prevent nuclear plant shutdowns, and we urge the Administration not to take actions that would upend these efforts to support the U.S. nuclear industry and our national security.

The nuclear energy market provides a reliable (non-intermittent), clean and affordable electricity source to the U.S. electric grid, supplying 20 percent of America’s electricity needs. A diverse uranium supply is an essential component of that reliability. Today, the majority of the U.S. uranium supply comes from the U.S. and close, trusted allies.

Import adjustment measures, or other burdens on this important fuel source would benefit foreign countries and create national security concerns. Such import measures would artificially increase U.S. prices and drive down non-U.S. prices benefitting China who would have access to artificially depressed non-U.S. uranium for its domestic commercial nuclear market.

For long-term defense needs, the government must also preserve the domestic supply of uranium, a depletable resource, unlike steel and aluminum which are not depletable. For example, the Department of Defense depends on the nation’s grid to power 99 percent of its installations, and reliability for these military bases means maintaining access to diverse fuel supplies, like uranium, for national security.

“Unfortunately, an increased reliance on domestic uranium sources for commercial nuclear reactors will irreversibly deplete the limited domestic uranium supply which is vital for national security” - David Tamasi, AHUG

Restrictions on U.S. nuclear energy generators’ ability to source fuel recommended by foreign-based suppliers with small operations in the U.S. cannot be favored at the risk of the economic benefits from U.S. nuclear plants. Such measures would accelerate the depletion of the finite domestic uranium supply for commercial nuclear reactors, risk virtual monopoly by one foreign-owned supplier in the enrichment market, and challenge continuing plant operations and thousands of jobs. Instead, the nuclear industry must be able to source fuel in a way that is reliable and affordable for its customers and allows the communities they serve to continue to thrive for years to come.

about ahug

The Ad Hoc Utilities Group (AHUG) consists of a majority of the nuclear generators in the U.S. including Ameren Missouri, Dominion Energy Services, Inc. on behalf of Virginia Electric and Power Company and Dominion Energy Nuclear Connecticut, Inc., Duke Energy Carolinas, LLC and Duke Energy Progress, LLC, Energy Northwest, Entergy Operations, Inc. and Entergy Nuclear Operations, Inc., Exelon Generation Company, LLC, Pacific Gas and Electric Company, PSEG Nuclear LLC, South Carolina Electric & Gas Company, and Xcel Energy Services Inc.