Because previously utilities were state regulated, they were immune from taxes on their decommissioning funds or the interest earned. In fact, the multinational intends to keep whatever profits it makes through cutting corners on site cleanup and reward its shareholders even though ratepayers money contributed significantly to the fund. Utilities believe that as decommissioning experience accrues costs will drop as utilities and contractors become more efficient at cleaning up sites. Variables in decommissioning include levels of contamination on site, federal standards for site release and costs of low-level waste disposal. Currently, decommissioning sites are experiencing a commitment by utilities to limit cleanup as much as possible and leave as much contamination behind as they can.
Decommissioning funds grow slowly, and depend on compounding to amass necessary funds for clean up.
Nuclear decommissioning accounts are far short of their goal. This decommissioning liability is a significant portion of nuclear utilities' stranded debt. If a utility can't sell its unit and closes prematurely, as many in New England have, it must negotiate with state regulators to assure adequate decommissioning funds. State regulators have allowed reactors to continue to collect funds from ratepayers until the original license expires. The only way that the buying of deteriorating nukes can be profitable for both buyers and sellers is if neither pays any tax on decommissioning funds-the fund that AmerGen intends to make a profit on.