The Nuclear Regulatory Commission expects to reach a decision on Entergy’s request to transfer the operating license for the James A. FitzPatrick Nuclear Power Plant in New York state to fellow utility Exelon by March, the agency said in a recent letter to Rep. John Katko (R-N.Y.).
Entergy in August agreed to sell the plant to Exelon for $110 million, after the New York Public Service Commission approved Gov. Andrew Cuomo’s Clean Energy Standard, which is projected to pay upstate nuclear power plant operators nearly $8 billion in energy subsidies over the program’s lifetime. Exelon has said Cuomo’s program is critical to the sale, which is facing challenges from environmentalists and other utilities that argue the subsidies are not in New York’s best interest. Both the NRC and the Federal Energy Regulation Commission must approve the deal.
Entergy had originally planned to close FitzPatrick by 2017 for economic reasons, and repeatedly fended off New York lawmakers’ attempts to save the plant.
The plant’s $600 million decommissioning trust fund would be transferred from the state Power Authority to Entergy under the license transfer request. The decision will require written consent from the commission, following technical and financial reviews from NRC staff.
In line with officials from the jurisdictions surrounding the New York facility, Katko in a Sept. 16 letter to the NRC explained the importance of FitzPatrick to the local and regional economy, citing the 600 jobs it provides.
“The plant is a vital part of the region’s economy, and an indispensable part of New York State’s plan to dramatically increase the emmissions-free portion of the state’s energy mix,” the lawmaker wrote.
The NRC responded to Katko in an Oct. 17 letter, which was made public Monday.