Nuclear Facilities Cost Segregation

Nuclear facilities are among the most capital-intensive infrastructure assets developed in the United States. While the reactor itself is subject to specialized regulatory and accounting treatment, a substantial portion of total project cost resides outside the reactor core, in electrical systems, balance-of-plant infrastructure, auxiliary buildings, safety-related support systems, and site improvements.

Alpha Consulting US provides Engineering-Appraisal-Based Cost Segregation for non-reactor nuclear infrastructure, focused on proper land abstraction, total-basis reconciliation, and conservative classification of qualifying tangible assets consistent with engineering function, appraisal methodology, and IRS expectations.

Our nuclear cost segregation services are explicitly limited to non-reactor infrastructure and support assets.

We do not perform cost segregation on:

• Reactor cores or nuclear fuel
• Nuclear steam supply system components subject to specialized nuclear accounting
• Regulated reactor internals
   

This scope discipline is essential for regulatory clarity, audit survivability, and institutional credibility.

Nuclear projects differ fundamentally from conventional real estate and other energy facilities due to:

• Extreme capital concentration
• Long development and construction timelines
• Megaproject execution risk
• Mixed-use infrastructure spanning power, safety, and operations
• Heightened regulatory and public scrutiny
   

In this environment, template-driven or engineering-only approaches are not sufficient.

An Engineering-Appraisal-Based framework ensures:

• Proper abstraction of non-depreciable land
• Economic reconciliation of very large capital bases
• Clear differentiation between structures, infrastructure systems, and support assets
• Conservative, defensible asset classification
   

Modern nuclear development emphasizes several principles that are directly relevant to cost segregation, regardless of reactor technology:

Nuclear capital investment is spread across hundreds of structures, systems, and components. Non-reactor infrastructure and support systems represent a meaningful share of total project cost and must be evaluated system by system, not through high-level allocation shortcuts.

Advanced nuclear designs increasingly rely on modular construction, factory fabrication, and integrated systems. These approaches shift cost away from traditional on-site construction and toward infrastructure, support facilities, and prefabricated systems—altering where depreciable basis resides.

As projects move from early deployments to repeat builds, learning effects reduce installation complexity and indirect costs more than they reduce raw equipment costs. Depreciation analysis must therefore reflect actual capitalized cost structure, not theoretical design assumptions.

Schedule delays, rework, and regulatory friction are persistent features of large nuclear projects. An appraisal-disciplined cost segregation framework provides a capital allocation checkpoint and helps prevent misclassification of costs that no longer represent long-lived economic assets.

Actual scope depends on project design and documentation, but may include:

• Electrical distribution systems
• Substations and switchyards supporting operations
• Power conditioning and backup infrastructure
   

• Turbine islands (non-reactor components)
• Cooling and heat-rejection systems
• Water treatment and operational support facilities
   

• Environmental monitoring systems
• Communications and non-reactor control infrastructure
• Security and access-control systems
   

• Site improvements and internal circulation
• Utility corridors and yards
• Infrastructure supporting phased or multi-unit development
   

All allocations are reconciled to total project basis using appraisal methodology, with engineering data used as supporting evidence.

Nuclear facilities are typically developed on large, strategically selected sites with safety buffers, controlled access, and long-term operational horizons.

From a cost segregation perspective:

• Land remains non-depreciable
• Site improvements must be carefully separated
• Misallocation at the land/interface level can materially distort depreciation outcomes
   

This makes appraisal-based land abstraction a critical control point.

Our nuclear facility cost segregation methodology emphasizes:

• Proper abstraction of non-depreciable land
• Reconciliation to total capitalized project cost
• Function-driven classification of infrastructure assets
• Conservative interpretation aligned with IRS scrutiny
• Clear documentation suitable for audit and institutional review
   

Acceleration is never pursued at the expense of defensibility.

Cost segregation for nuclear facilities is typically evaluated:

• After completion of non-reactor infrastructure
• Upon acquisition or restructuring of existing facilities
• In connection with valuation, financing, or recapitalization events
• As part of long-term capital recovery planning
   

This page reflects future-aligned capability, consistent with evolving advanced nuclear and SMR deployment pathways.

Nuclear facility cost segregation is not a commodity service.

It requires:

• Infrastructure literacy
• Appraisal discipline
• Regulatory awareness
• Conservative professional judgment
   

An Engineering-Appraisal-Based Cost Segregation study ensures that qualifying non-reactor nuclear infrastructure is analyzed and documented in a manner that is defensible, transparent, and aligned with the long-term capital nature of nuclear assets.
 

If your nuclear project includes substantial non-reactor infrastructure, a properly scoped and appraisal-disciplined cost segregation study may support long-term capital recovery planning.

Contact Alpha Consulting US to discuss feasibility, scope boundaries, and documentation readiness.