Funds To Shut Nuclear Plants Fall Short

The power companies have been hammered by the same declining market returns as colleges, companies and private investors. Industry critics say reactor owners weren't saving enough even before the financial collapse, and that federal regulators have not held the industry to a high enough standard.

Federal regulators are expected to release a report later this week that will describe shortfalls at 30 of the nation's 104 nuclear plants and ask operators for details about how they plan to resolve the problem.

The amount of money set aside for dismantling the plants has decreased at nearly four of every five reactors, according to an AP analysis of financial records provided every other year to the Nuclear Regulatory Commission. The government could force plant operators to set aside more money.

Plant owners say they have several ways to close the gap. In addition to idling the plants, the government can simply extend licenses to operate them. And investments could recover in the years to come. Industry officials say a 6 percent annual rate of return is a reasonable long-term goal.

Most nuclear plants will be operating for several more decades and will be able to recoup their fund losses, said Steve Kerekes, a spokesman for the Nuclear Energy Institute, a trade group.