“The decision to close Pilgrim was incredibly hard because of the effect on our employees and the communities in which they work and live”, Leo Denault, Entergy’s chairman and chief executive officer said.
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The news of Pilgrim’s planned closing comes after federal inspectors in September downgraded its safety rating and said they would increase oversight.
“The premature closure of Pilgrim due to low wholesale power prices that do not adequately reward existing nuclear energy plants for generating clean, reliable power is disappointing”. Entergy attributed its financial problems partly to the generation of other types of electricity – low natural gas prices driven by shale gas production, state programs that subsidize renewable energy, and a state proposal to provide above-market prices to Canada for hydroelectric power.
Bill Mohl, president of Entergy Wholesale Commodities, said Tuesday that the plant is expected to spend $45 million to $60 million under the enhanced oversight of the plant.
Entergy says the falling prices would lower annual revenue from Pilgrim by more than $40 million.
The closure of Pilgrim will mark Entergy’s exit from New England.
“Factors that could lead us to shut down earlier than 2019, such as at the end of our current operating cycle in 2017, include: increased cost of regulatory recovery; any additional regulatory challenges stemming from operational issues; and potential opportunities to find economically viable sources of capacity to replace that which Pilgrim is obligated to supply”, Entergy said.
But Mohl said the plant’s neighbors have no reason worry.
He later added: “With this announcement we must also recognize that the time is now in New England and around the nation to rapidly transition toward the safe, affordable clean energy of wind, solar and geothermal power and continue to invest in energy efficiency and making the vehicles on our roads even more fuel efficient”. Over the years, with rare exception, nuclear energy facilities have supported the area by reliably providing the electricity that can be the difference between life and death.
“My job is to ensure that plant is operated safely, that there is not a threat to the health and safety of the public”, Mitchell said. Once the shutdown occurs, the staff will be reduced by half and as the decommissioning process begins, the staff will continue to shrink.
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Pilgrim pays the town of Plymouth almost $10 million every year in property taxes.
