August 1, 2007

Energy is the hot topic on Capitol Hill this summer. Separate bills are emerging that include increasing mileage standards and encouraging the use of alternative fuels.

Will nuclear energy's progression be slowed by an inability to get uranium to feed the reactors? Some say that underutilized mines have taken a toll and will lead to hardship. Others disagree, saying that the mines can gear up and the free market can respond to changing conditions.

A recent study by the Massachusetts Institute of Technology says that the nuclear industry has lived off commercial and government uranium inventories that are nearly depleted. Globally, uranium production now meets only 65 percent of current reactor requirements, which has led to uranium prices rising from $7 a pound in 2000 to as much as $120 per pound just recently.

Utilities like green energy. They also like the tax benefits that come with providing them. While such investments have proved fruitful, power companies are expressing concerns that those emerging technologies are still expensive and that the permitting process is just as onerous as other fuel sources.

Much of the growth so far in the renewable energy sector is largely because of government-sponsored tax breaks and state renewable mandates that instruct utilities to provide a certain level of green energy. The goal is to create demand, which in turn attracts suppliers to the field and ultimately leads to the development of newer and better products and services. It's not just good for the environment. It's also healthy for companies' bottom lines.