Biden begins $6B program to bail out distressed nuclear power plants (NYSEARCA:XLU)

The Biden administration is launching a $6B program to rescue nuclear power plants at risk of closing, opening a certification and bidding process Tuesday for a civil nuclear credit program to aid financially distressed owners or operators of nuclear power reactors.

The U.S. Department of Energy said it will take applications for the first round of funding in its program until May 19, prioritizing reactors that have already announced plans to close.

The program could provide a boost to operators including Public Service Enterprise Group (PEG), Constellation Energy (CEG) and Energy Harbor (OTCPK:ENGH), according to Bloomberg.

PG&E (PCG) plans to shut its two Diablo Canyon reactors in California in 2024 and 2025.

ETFs: (NYSEARCA:XLU), (URA), (NLR)

A dozen U.S. commercial nuclear power reactors have closed in the past decade before their licenses expired, and a quarter or more of the remaining U.S. nuclear fleet of 93 reactors is at risk, according to the DoE.

Nuclear power currently provides ~20% of electricity in the U.S., or about half the nation’s carbon-free energy.

The only nuclear plant now under construction in the U.S. in Southern Co.’s (SO) Vogtle plant in Georgia; the project’s costs have ballooned over the years, and another delay was announced in February.