Introduction

10.86. The energy derived from the fuel in a nuclear reactor, which is generally sold in the form of electricity, represents a commercial product. The cost of generating this product is made up of several components, one of which is the cost of the fuel. In order to relate fuel costs to other costs, a brief outline will be given of the various contributions to nuclear energy costs. It is customary to apportion the costs of generating electricity, from either nuclear or fossil fuels, to three categories: capital (or construction) costs, expenditures for operation and maintenance, and fuel costs. These will be considered in turn. However, to provide desirable background, we will first review the engineering economics concept of the time value of money.