German nuclear deal elusive but seen imminent

["Sandy Perle" <sandyfl@earthlink.net>]

German nuclear deal elusive but seen imminent

BERLIN, April 17 (Reuters) - The German government said on Monday it 
was still confident of an agreement on phasing out nuclear power 
despite a denial from the energy industry that a deal had been 
reached to spread the withdrawal over 30 years. 

A government source said there was optimism that scheduled talks with 
nuclear industry officials on May 2 would pave the way for a final 
deal before the summer, the deadline the government has imposed for a 
compromise. 

``There is every reason to be optimistic that the working level talks 
can be wound up on May 2,'' the source said, adding that Chancellor 
Gerhard Schroeder would meet industry chiefs to sign a conclusive 
deal after that. 

A leading German energy official earlier quashed reports of a deal 
with the government to close down Germany's 19 nuclear power plants 
within 30 years of their start-up. 

``The outcome of negotiations remains open. What is clear is that 
phasing out plants after 30 years or after the equivalent in volume 
production is inconceivable for us,'' Ulrich Hartmann, head of 
utility Veba AG, said in a statement. 

BALL IN GREENS' COURT 

Germany's ZDF television reported over the weekend that a deal had 
been reached on phasing out the plants within 30 years but that a 
plant at Muelheim-Karlich, which was removed from the power grid 
after 13 months in operation, was a sticking point. 

The government source said there was resistance to an industry demand 
to spread the theoretical remaining timespan of Muelheim-Karlich's 
life across the rest of the industry, effectively delaying the 
withdrawal a further one and a half years. 

``The ball's in the Greens' court at the moment,'' the source said of 
the junior coalition partner's insistence that the withdrawal be 
spread over no longer than 30 years, already too slow for many in the 
ecologist party. 

The energy industry has threatened legal claims for any financial 
damage caused by the withdrawal, a major election commitment of 
Schroeder's ``red-green'' coalition. 

Government lawyers believe, however, that by spreading the move over 
30 years of a plant's working life, they can avoid claims for 
compensation. 

Schroeder has said that if no deal is reached with industry by the 
parliamentary break in July, the government will proceed with 
legislation anyway. 

Aside from Veba, the three other leading nuclear energy suppliers are 
Viag, RWE and EnBW. 

------------------------------------------------------------------------
Sandy Perle					Tel:(714) 545-0100 / (800) 548-5100   				    	
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