Indian Point nuclear plant in NY to shut down early
The two operating units at Indian Point Energy Center operated by Entergy in Buchannan, New York, will close in 2020-2021 as part of a settlement between Entergy and New York State.
Under the agreement, the state will drop legal challenges related to renewal of operating licenses.
“Key considerations in our decision to shut down Indian Point ahead of schedule include sustained low current and projected wholesale energy prices that have reduced revenues, as well as increased operating costs,” said Bill Mohl, president of Entergy Wholesale Commodities. “In addition, we foresee continuing costs for license renewal beyond the more than $200 million and 10 years we have already invested.”
Record low gas prices, due primarily to supply from the Marcellus Shale formation, have driven down power prices by about 45 percent, or by about $36 per megawatt-hour, over the last 10 years, to a record low of $28 per megawatt-hour, Mohl said.
“A $10 per megawatt-hour drop in power prices reduces annual revenues by approximately $160 million for nuclear power plants such as Indian Point,” he added.
Under the settlement, Unit 2 will shut down by April 30, 2020 and Unit 3 by April 30, 2021. Entergy will continue to pursue operating licenses for the plant’s remaining operating years, but must request that the Nuclear Regulatory Commission shorten the length of the license from 2033 and 2035 for Units 2 and 3, respectively, to 2024 and 2025.
Maria Korsnick, president and chief executive officer of the Nuclear Energy Institute, said that despite Entergy’s decision to close the nuclear plant, there continues to be a recognition of nuclear energy’s value.
“In New York itself, Gov. Cuomo last year led the successful effort to preserve upstate nuclear power plants through a zero-emissions standard that values their clean air attribute,” she said. Similarly, Illinois recently enacted legislation to preserve at-risk nuclear facilities in that state.
“I’m confident that federal and state lawmakers increasingly will view nuclear energy facilities as a vital component of our nation’s industrial and electrical infrastructure, even as companies continue to innovate and design the next-generation nuclear energy technologies that will strengthen our energy diversity and energy security for generations to come,” Korsnick said.
