Duke Energy Corp (DUK), Exelon Corporation (EXC): Is Nuclear Energy’s Lightbulb Dimming?

Whether or not the Production Tax Credit for wind energy production is adjusted due to the SONGS data remains to be seen. Subsidizing wind power has led to negative electricity prices in the country’s heartland — smack-dab in the middle of Exelon Corporation (NYSE:EXC)’s nuclear stable of 19,100 MW. CEO Christopher Crane has warned that policies that continue to subsidize wind power beyond what the market can bear could lead to plant closures. Duke Energy Corp (NYSE:DUK), which owns 8,450 MW of nuclear capacity, could face similar decisions.

Foolish bottom line
I don’t believe the United States is anywhere close to dropping nuclear power, but if it ever does happen, it will be a gradual decline that will take decades to play out. Hopefully for investors relying on the steady dividends of energy companies, SONGS serves as a wake-up call to atomic energy critics. The truth is that every energy source has its advantages and disadvantages. Wind and solar facilities capture disproportionate amounts of energy throughout the day; nuclear power plants are ridiculously expensive to build; and natural gas extraction has no shortage of environmental question marks. The best thing for investors and consumers is a healthy mix of each, including nuclear.

The article Is Nuclear Energy’s Lightbulb Dimming? originally appeared on Fool.com and is written by Maxx Chatsko.

Motley Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and emerging technologies.The Motley Fool recommends Exelon.

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