Duke Energy Corp (DUK), Dominion Resources, Inc. (D), Edison International (EIX): Is Nuclear Energy Dying Out?

In March 2012, The Southern Company (NYSE:SO) received the first construction approval in over 30 years for two new units at its Vogtle plan in Georgia totaling 2,200 MW of electric capacity. SCANA Corporation (NYSE:SCG) wasn’t far behind with approval for two units of its own in South Carolina totaling around 2,100 MW. The Southern Company (NYSE:SO) expects its units to come on line by 2017, while both of SCANA Corporation (NYSE:SCG)’s will power up by 2019.

Source: eia.gov

The nuance of nuclear
Each utility had reasons for retiring nuclear plants. In Duke Energy Corp (NYSE:DUK) and Edison International (NYSE:EIX)’s cases, the decisions were (literally) spurred by cracks in their plans. For Dominion Resources, Inc. (NYSE:D), unfortunate contract timing put it in an economic situation it couldn’t avoid.

Likewise, The Southern Company (NYSE:SO) and SCANA Corporation (NYSE:SCG) have both managed to find new competitive options for nuclear generation, and other utilities like NextEra Energy, Inc. (NYSE:NEE) are hard at work modernizing their current facilities.

Just like smart investors, these utilities have opted out of a one-size-fits-all electricity strategy and are making moves to maximize profit potential – whether that means nuclear or not. Each company’s individual decision is most likely a good one, and investors shouldn’t expect dividends to expand or diminish on nuclear alone.

The article Is Nuclear Energy Dying Out? originally appeared on Fool.com and is written by Justin Loiseau.

Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo.The Motley Fool recommends Dominion Resources (NYSE:D) and Southern Company.

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