Loads of misinformation and bias and just incorrect stuff in this thread. The anti-wind circle jerk was most amusing....
Let's start where most in the US on this board probably agree: in my opinion, nuclear is a critical part of our grid going forward. This President believes that. John McCain did too. We are, for the first time in 20-30 years, actually building nuclear power plants again.
Nuclear is can be run safe and clean -- the French power some extraordinary portion of their grid (60%?) without incident. The new Westinghouse AP-1 design is much safer than Fukushima. It relies on convection to cool rather than electric water pumps, and thus doesn't lose cooling when the power goes out (the key problem at Fukushima).
The new B&W small modular reactor (TVA has a letter of intent in place to buy a buttload of them) will be the real revoluationary step forward if it works. These small reactors can be sed by coops and other local generators to power to small towns/cities and are much cheaper to build and operate.
All of that said, due to the costs and risks of nuke power (Nick's article is actually fairly accurate), nuke is not cheap. It's expensive and time consuming to build a nuke plant.
So the answer to the US grid's problems lies in three areas in my view;
1. Diversification. The US is blessed with a variety of power sources: wind (we are the Saudi Arabia of wind), natural gas, coal, nukes, hydro and to a lesser extent solar. A mixed grid like that proposed by President Bush, and President Obama makes sense. Laughing any of these sources out of the mix is a stupid mistake. Power sources have no politics. It's silly for Republicans to be pro-fossil fuels and anti- green power and just as silly for Democrats to be pro-green power and virulently anti-fossil fuel.
We clearly need to slide back the amount of coal plants we have; they are dirty and we are not accounting for the externalities, but clean coal and LNG (liquidfied natural gas plants) will continue to be a large portion of our grid driven by fossil fuels.
Note that some of the talk about wind and taxes and subsidies above is laughably incorrect. Wind is fairly cheap to install and the per kilowatt hour is within range of coal and LNG. Hydro is the cheapest, and nuke and solar the most expensive. Of all the green sources, solar is the most problematic because it is so difficult to generate a kilowatt of power.
Wind is presently 4% of the grid. DoE thinks it could be 20ish within 20 years. It's already a significant portion of the German, Spanish and Danish grids (and other European countries).
The only subsidy for it by the way is the wind tax credit, which doesn't kick in until the farm is up and running. Lots of people have made a lot of money off of wind farms and it has nothing to do with subsidies.
2. uSmart Grid. Having a grid where power can be wheeled from one RTO (region) to the other based on load data will help (a) eliminate stress and strain on our T&D system and (b) reduce the need for costly and redundant power generation.
3. Move to Underground Lines Mark noted this is happening in Europe. It's finally reached the US (and is a large part of the business I do). Underground cables, even over large distances (hundreds of miles) are now more economically feasible than overhead lines. They are easier to permit, and once installed require far less maintenance. They allow the use of HVDC technology to transmit power over long distances using DC current to avoid large transmission losses.
A diversified, connected, smart grid is the answer to cheap US power.