Price-Anderson Indemnification
The Price-Anderson Act authorizes methods of insuring the public for damages from nuclear accidents. The Energy Policy Act of 2005 extended the period of coverage to include all power reactors issued construction permits through December 31, 2005. while the new law does not increase the total maximum premium charged to reactor operators (set at $95,800,000 (2003 dollars) per reactor and adjusted for inflation in the future), it raises the annual charge to $15,000,000 (2003 dollars) per reactor (also adjusted for inflation).
Under the Price-Anderson program, commercial reactor operators carry the maximum amount of private insurance for off-site damages available (currently $300 million). For damages in excess, all reactor operators would be assessed up to maximum annual charge for as many reactors as they each own and for as many years as necessary until the total maximum premium has been paid. This provides for over $10.0 billion in funds for any one accident. As more commercial power reactors are built in the coming years, this $10.0 billion pool for paying out damage claims will grown substantially.
The Price-Anderson Act also authorizes the Department of Energy and the Nuclear Regulatory Commission to indemnify the nuclear-related activities of government contractors and research reactor operators with federal funds.
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