Dividends: Seabrook at the Brink

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Even among the dozens of troubled nuclear-power projects in the U.S., New Hampshire's Seabrook stands out as a whopping loser. The project's expected cost went from $900 million in 1972 to current estimates of up to $9 billion. Its principal owner, Public Service Co. of New Hampshire, admitted last month that because of Seabrook it may be forced into bankruptcy. If that happens, it will be the first major U.S. utility to file for bankruptcy since the Great Depression. Last week, in a drastic effort to keep itself solvent, the company abruptly halted work on Seabrook and stopped paying dividends to shareholders. The company hopes to resume work by arranging for new loans.

By laying off 5,200 workers, the owners expect to save $750,000 a day. But the project will continue to eat up $1 million daily because of other expenses, primarily interest payments. Many investors hope the utilities will decide to scrap the reactor, which is 73% finished. Its twin, 23% completed, was tentatively canceled last month. Said Maine Public Utilities Commission Chairman Peter Bradford: "Something had to be done." The utility can only hope it did something soon enough.