Andrew Coffman Smith reports that New York nuclear plants are in dire need of revenue and Exelon Corp. is warning that the Nine Mile Point and R.E. Ginna nuclear plants may be forced to close if state regulators fail to provide subsidies to compensate upstate nuclear generation at above-market prices. Meanwhile, Entergy Corp. is crying foul at the exclusion of Indian Point .. the sole downstate nuclear plant ..from the Gov. Andrew Cuomo subsidy plan.
The November 2015 announcement by Entergy that it is retiring its uneconomic James A. FitzPatrick plant by early 2017 has galvanized New York and Cuomo Democratic administration into action to save the three upstate nuclear plants in an era of low electricity prices fueled by low natural gas prices.
Nuclear generation makes up roughly a third of New York electricity mix, and the loss of the 851-MW FitzPatrick plant alone would threaten the reliability of the state grid by leaving a statewide deficiency, warned a Feb. 11 New York ISO report. Cuomo has stressed that the emissions-free power produced by nuclear power plants is also essential in meeting the state goal of cutting carbon dioxide emissions 40% by 2030 from 1990 levels.
As a result, the Cuomo administration is trying to provide zero-emissions credits as part of the governor clean energy standard, or CES, initiative to compensate the carbon-free baseload of upstate nuclear plants, which are located along the shore of Lake Ontario. The New York Public Service Commission is also seeking to develop interim payments to keep plants commercially afloat until the credits kick in. State lawmakers have likewise proposed $100 million of funding for FitzPatrick but Entergy is adamant that the plant will still close because of current economics.
Both Ginna and Nine Mile Point are facing significant, long-term financial challenges due to historic low natural gas prices, record low capacity market clearing prices, and the lack of favorable federal and state policies.
Resource Portal for I2M Clients, Associates, and Geoscientists
Managed & Built by I2M Consulting, LLC | © 2010-
Managed & Built by I2M Consulting, LLC | © 2010-