GE's Political Influence

[TheFranklinParty]

A few months back the U.S. Department of Energy decided it would not guarantee a loan for USEC to expand a centrifuge uranium enrichment plant in Ohio. Not only did this cost the citizens of Ohio more than 2000 jobs, but it came as a bit of a surprise since the U.S. imports 80% of its reactor fuel. It is especially curious since 35% of the worlds enrichment facilities will be rendered obsolete, by 2017, due to age and old technology. It seems like this would be a great investment considering that no taxpayer money was needed, just a guarantee on a private loan.

With 53 new nuclear reactors currently being built worldwide, one has to ask; why the Dept. of Energy would help eliminate jobs, increase foreign energy dependency, and prevent a U.S. based company from effectively competing in a growing marketplace. The answer has now become clear. Once again, General Electric has flexed its political influence.

See, GE has a different and potentially more profitable way to enrich uranium. They’re focused on a laser technology which is supposedly more efficient. The problem is that this technology is yet to be proven and has failed to provide results several times since its inception in the early 1980’s. Even if it proves to be everything promised, it still baffles the mind why the government would prevent USEC from participating in the marketplace? General Electric has already said that it would apply for federal loan guarantees to help finance the building of its laser plant. I wonder if the D.O.E. will approve that application?

 

[The Scotsman]

“A substantial portion of our recent effort has been to focus on ways to mitigate cost risk for the project and the company’s ability to manage that risk, which includes our strategic alternatives,” Welch said. “It is our plan to present a revised and improved financial structure as part of our updated submission to DOE.”

USEC Provides American Centrifuge Update full article avaliable here

Perhaps once the teething troubles in the original submission are ironed out then they may get their guarantee? It would be interesting to see how this developes.

 

[TheFranklinParty]

Perhaps once the teething troubles in the original submission are ironed out then they may get their guarantee? It would be interesting to see how this developes.

My challenge is that the DOE gave very little reason for their decision in the original denial of the application. The DOE also had several preliminary discussions that gave them ample time to voice these concerns. Finally, the directive of a sale of the company once again plays into the monopoly mentality of this administration and this congress. One of the purposes of this kind of loan guarantee is to prevent monopolies and to provide smaller companies with a competitive opportunity. Even a 1 year delay in this project puts the U.S. at greater risk of falling behind in Nuclear Power production and makes us rely on foreign enrichment.

 

[Hanno]

It's disgusting - the previous CEO made his money on quality-management - Immelt instead is a punk to the government.

 

[AtheismIsReality]

We have corporate interests influencing our government to an extent not seen since the Gilded Age.

 

[TheFranklinParty]

We have corporate interests influencing our government to an extent not seen since the Gilded Age.

The funny thing is that it is in contrast to the rhetoric. The current Congress and administration talk about reining in big business and have made them the new evil axis, but they have taken more money from PAC's and 527's then any group before them. The power is centralizing on a few key corporate and union leaders, instead of spreading to the people and the smaller entities that create the majority of the jobs in this country.

 

[Dr.Who]

So you are saying that some politician received money from GE to make a deal that would be good for GE and he then subsequently killed a deal that would be good for America?

I would imagine that every person and company around would like politicians to do what is good for them. We can't stop just some people from making donations to politicians and we also can't stop all people from making donations to politicians. The politician is responsible to make the right choice for America and not for a particular company and not for himself.

Who was that politician?

 

[Hanno]

GE's a special case - note the 'eco-imagination', buying NBC, the coily-lightbulbs - they don't just want special favors, they've changed their business model to align not with the market but with government.