E.ON Says Nuclear Tax May Cost EUR1.5B A Year (Germany)

[jpak]

http://online.wsj.com/article/BT-CO-20100811-708859.html

Utility E.ON AG (EOAN.XE) Wednesday said the German government's plan to impose a tax on nuclear fuel rods could cost the company up to EUR1.5 billion in adjusted earnings before interest and taxes per year, making the operation of nuclear reactors uneconomic.

E.ON's comments echo those made by EnBW Energie Baden-Wuerttemberg AG's (EBK.XE) CEO Hans-Peter Villis less than two weeks ago, and demonstrate the energy industry's rising concern with the government tax plans and a closely related debate on extending the operating lives of nuclear power plants.

E.ON said that if the government adopted a Finance Ministry draft of the proposed tax, it may have to "reduce investment to maintain its financial health."

A spokesman for the Finance Ministry, which has drafted the tax, declined to comment on E.ON's statements.

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[Dogmudgeon]

1. How is this possible if nukes aren't economically feasible?

The only way a tax can be levied is if the enterprise being taxed is making money. But you and the other antis have been telling us for several years that nuclear power absolutely and categorically can NOT function without the massive input of government money.

Do you mean to say that nuclear energy in Germany is actually so profitable that they can tax just one nuclear power plant for $1.5 billion? There are 17 nuclear power plants in Germany. That's potentially $25.5 billion dollars in revenue for all of them.

So much for "nuclear power is too expensive" and "nuclear power can't operate without subsidies".

--d!