Fed to Boost Nuclear Energy by $18.5 Billion

The U.S. Energy Department is putting its weight -- and dollars -- behind nuclear energy in a big bid to produce the next wave of reactors.

According to The Wall Street Journal today, the new class of nuclear reactors will come courtesy of $18.5 billion in financing from the Energy Department, which will be divvied up between four different power companies. The financing will come in the form of loan guarantees.

The story said that likely recipients will be UniStar Nuclear Energy, NRG Energy(NRG Quote), Scana(SCG Quote) and The Southern Company(SO Quote).

The fed hasn't formally announced the outlays.

Scana and The Southern Company were each up 1.3% in the morning. NRG Energy slipped 18 cents to $22.72. Constellation Energy Group(CEG Quote), one of the companies that launched UniStar Nuclear Energy, watched its shares gain 15 cents in the morning to come to $26.82.

The story also said that the financing could allow the companies to break ground in 2011, with a 2015 or 2016 target for the plants to come online.