quantified in assessments completed to date. Another way to compare the potential of the SPS to conventional power alternatives is to compare total lifetime expenditures required by each. For example, assume that SPS systems would cost $2,340/KW if purchased now. Nuclear plants will be pegged at $1300/KW and coal plants at $100/KW.* If the given plants are 50% financed at $8.5% interest, earnings are.$13.5% per year on equity investment and other capital costs are considered in a fashion typical of current utility operations (taxes, insurance, etc.), then the total capital-related costs for the three systems are as is shown in Figure 3 *If the real costs of construction materials escalate a little faster than inflation in general, and the regulatory costs for conventional plants continue to rise - higher for nuclear than coal - and using realistic operating factors for each plant (percent of time they may operate and deliver power), the total plant costs for each option come to the amount shown in Figure 2. Adding the remaining costs, and dividing the total by the total number of kilowatt-hour generated (1600 x 109 for all systems) yields the resultant average cost per kilowatt-hour stated. If the U.S. is successful in curbing infl action in the real costs of materials and fuels through the year 2000, the SPS cost advantage decreases. On the other hand, if inflation rises above the conservative trend projection assumed (due to depletion of fuels, metals, and construction materials), then SPS systems should have greater economic promise than is suggested in Figure 3. The achievability of predicted cost is generally viewed as a major SPS uncertainty. This is a valid issue that will not be resolved for some time. However, there are two factors of substantial importance that should stand in favor of respecting the present cost assessment. The first is that the majority of the SPS is, as stated earlier, simple panels, structure, wiring and very conventional electrical power processing equipment. Standard industrial costing practices are generally respected for pricing these kinds of things. Second, the fundamental
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