The US’ $80 Billion Nuclear Deal Is a Mess

America’s nuclear power advocates often grumble that the birthplace of reactors can’t build them the way China does. But the US government’s $80 billion “partnership” with Westinghouse Electric Co. means their lamentations appear to have been heard. We are doing nuclear policy with Chinese characteristics — and Japanese money, it seems.

Westinghouse, which is owned by Brookfield Asset Management and Cameco Corp., just announced an unusual deal. The US effectively intends to underwrite the construction of at least $80 billion of Westinghouse reactors. Besides helping to fulfill President Donald Trump’s plan to have 10 new nuclear power plants under development by 2030, there’s an equity kicker. Provided the government follows through, it would then get a 20% share in any dividends paid out by Westinghouse above a $17.5 billion threshold. And if the US can get all this going within the next three years or so, and provided Westinghouse is deemed at that point to be worth at least $30 billion, the company may then be required to do an initial public offering with the government getting warrants that may convert into an equity stake.