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The first nuclear power plant to be built in the U.S. since the Three Mile Island accident in the 1970's, is being financed by Bonds and apparently totally without Bond Insurance.
One party's interest in the plant is reportedly being financed by a combination of mostly (taxable) Build America Bonds and some tax-exempt bonds. The total debt launched in this way by Municipal Electric Authority of Georgia, a publicly owned utility, is some $2,500,000,000.00 or $2.5 Billion.
Terms of the entire deal include conditional loan guarantees offered by the Federal Government to the owners of the nuclear reactor: Georgia Power's parent, Southern Company, and Oglethorpe Power Corporation. The amount reportedly guaranteed: $8,300,000,000.00 of a total projected cost of $14,000,000,000.00, or $8.3 Billion out of a total estimated cost of $14 Billion. See Kelly Nolan and Romy Varghese, "Nuclear Solution: Muni Bonds" p. C6, col. 1 (Wall Street Journal, Thursday, March 4, 2010).
Bond Insurance is not even mentioned as a part of this plan.
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