Why a Big Bet on Nuclear Destroyed Toshiba
http://www.theenergycollective.com/shellenberger/2398404/big-bet-nuclear-destroyed-toshibaFebruary 17, 2017 by Michael Shellenberger
oshiba, the venerable 80 year old Japanese electronics giant, appears to be going bankrupt.
Toshiba was supposed to have announced at least $7 billion in losses during an earnings call yesterday. Instead, it cancelled the report, saying “it was not able to immediately secure the approval of its auditor.”
Financial Times reports that “The delay to publication of Toshiba’s earnings came as the company said lawyers were examining claims by a whistleblower in the US that Westinghouse mishandled its takeover of Stone & Webster.”
Toshiba’s losses stem from its construction of new nuclear plants in the United States.
The collapse of Toshiba will result in the halting of all new nuclear power plant construction by its US-based subsidiary, Westinghouse.
Toshiba’s failure also raises the question of what happens to the Vogtle plants if Toshiba fails? Does it open two southeastern U.S. utilities — Southern and SCANA — up to exposure to Toshiba shareholder lawsuits? And who will build future U.S. nuclear plants?
The loss estimate is already $2.6 billion higher than the estimate Toshiba gave in December, and could go higher.
The reason it could go higher is that nobody knows how long it will take to finish the U.S. plants, which are three years behind schedule and billions over budget.
Toshiba as recently as last June had as its goal the construction of 45 nuclear reactors around the world, including two in the UK, six in India, and possibly two more in Georgia, all using Westinghouse’s design, the AP-1000. Future Westinghouse reactors will either be built by some other company or not at all....
