Chris Schneidmiller
RW Monitor
1/29/2016
Power provider Entergy this week dismissed New York’s new proposed strategy to keep nuclear power plants in the state solvent and operating, saying it is proceeding with the planned closure of the James A. FitzPatrick Nuclear Power Plant.
In December, Gov. Andrew Cuomo ordered the state Department of Public Service to establish a Clean Energy Standard (CES) that would feature operational mandates to meet his goal of having half of all electricity consumed in New York produced by renewable sources by 2030. One of the main goals of the CES is keeping open upstate nuclear power plants, which provide roughly 16 percent of New York’s energy – without emissions — but are hurting financially in the face of lower natural gas prices and other challenges.
Toward addressing that, the white paper calls for requiring state utilities to purchase power from upstate nuclear power plants, including FitzPatrick in Oswego County and the Robert Emmett Ginna Nuclear Power Plant in Wayne County.
Entergy in November notified the Nuclear Regulatory Commission that the 40-year-old FitzPatrick facility would halt operations late this year or in early 2017. The company has cited natural gas prices, increased operational costs, and a poor market design as forcing the closure. Nothing from Albany in recent days changes Entergy’s intentions or schedule, spokeswoman Tammy Holden said.
“We have advocated for a clean energy standard in New York for several years. Unfortunately, whatever this program may turn out to be, it would not be in place in time to change the outcome for FitzPatrick,” Holden said by email. “We do not know when the support might become effective, how much it might be, what terms and conditions would apply to receiving support, or many other important details.”
Such specifics are not likely to be known until mid-2016, Holden noted. The program of mandates to drive up renewable energy use is to be submitted to the state Public Service Commission for consideration in June, according to the white paper.
“Under these circumstances, we remain focused on safely operating FitzPatrick through the end of its current operating cycle, then safely decommissioning the plant,” Holden said. The closure date will depend on “operational and regulatory considerations,” she said, without elaborating.
Entergy has been on a reactor-closing run in recent years, halting operations at the Vermont Yankee Nuclear Power Plant in December 2014 and announcing in October 2015 that it would shutter the Pilgrim Nuclear Power Station in Massachusetts no later than June 2019. Conversely, it has sought to keep its Indian Point Energy Center near New York City open under opposition from the Cuomo administration.
Exelon Corp.’s money-losing Ginna facility is already operating with ratepayer-backed financial assistance from Rochester Gas & Electric Corp. through March 2017. However, it currently appears likely to close afterward even though its NRC license is good to 2029.
“The NY Public Service Commission staff’s Clean Energy Standard white paper will require additional analysis, but our initial impression is that the proposed mechanism to support the continued operation of upstate nuclear facilities as a “bridge” to a low-carbon future could provide a meaningful path to sustain these facilities, which are vital to achieving New York’s clean air objectives,” Exelon said in a statement Thursday. ”The implementation timeline is reasonable. We need to be certain that the mechanism provides the ability to maintain the safety and reliability of these facilities as the primary consideration. The economics of the proposal will be a critical determiner of its success, and we look forward to working with the governor, the PSC and other stakeholders to learn more.”
