WASHINGTON – In a shocking move, the Department of Justice has dropped its antitrust probe into a proposed nuclear power plant cartel, clearing the way for seven major operators to share resources and coordinate best practices.
The STARS Alliance LLC, comprised of Union Electric Co., Arizona Public Service Co., Luminant Generation Company LLC, Pacific Gas and Electric Co., Southern California Edison Co., STP Nuclear Operating Co., and Wolf Creek Nuclear Operating Co., will be allowed to share personnel, parts, and equipment, as well as coordinate contingency planning, including responses to new Nuclear Regulatory Commission requirements.
Acting Assistant Attorney General Joseph Wayland stated that the proposed cooperative activities could have a procompetitive effect, increasing efficiencies that result in lower costs, increased output, or increased safety.
Despite concerns about the potential impact on competition, the DOJ concluded that the cooperative activities should not have any adverse effect on the market. The STARS members represent 13 of the 69 operating commercial nuclear pressurized water reactors in the United States and 13 of the 104 operating commercial nuclear reactors in the country.
The DOJ’s decision has sparked concern among critics, who argue that the cartel could lead to increased costs and decreased competition in the nuclear power industry.
The STARS Alliance participants are some of the largest nuclear power plant operators in the country, with plants in Missouri, Arizona, Texas, California, and Kansas. The proposed cartel will be prohibited from sharing competitively-sensitive pricing or marketing information.
The DOJ’s business review procedure allows organizations to submit proposed actions to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws. The department reserves the right to challenge the proposed action under the antitrust laws if it produces anticompetitive effects.
The decision has raised questions about the DOJ’s commitment to enforcing antitrust laws in the energy sector. Critics argue that the DOJ’s decision sets a dangerous precedent for other industries and could lead to increased collusion and anti-competitive behavior.
The STARS Alliance will be required to file regular reports with the DOJ to ensure compliance with antitrust laws.
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