The agreement is valued at $110 million and would allow Entergy to transfer the Scriba, N.Y., plant’s operating license, according to Exelon. Exelon Generation’s nuclear fleet operates at an industry-leading 93 percent or higher capacity factor, a key measure of efficiency.
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“I appreciate the efforts of Entergy and Exelon, and the hard work of our team from the state, including the Public Service Commission, the New York Power Authority and NYSERDA to save Fitzpatrick’s jobs, significantly reduce greenhouse emissions, and help build a sustainable future for our children and grandchildren”, Cuomo added.
It’s expected that the acquisition will be complete in the second quarter of 2017, Exelon said. The agreement requires regulatory review by a number of state and federal agencies, including the Department of Justice and the Nuclear Regulatory Commission.
The firms credited Gov. Andrew Cuomo with helping to facilitate the transaction.
“The news that the FitzPatrick nuclear plant will be saved is an incredibly positive development for the upstate region and means that thousands of working families will continue to enjoy the high-paying, solid jobs that this plant provides for New Yorkers”, Ted Skerpon, chairman of the IBEW Utility Labor Council of NY, said in a statement.
Exelon Corp. announced yesterday it would take over the James A. FitzPatrick nuclear plant in upstate NY, ending a lengthy debate over the future of the plant now owned by Entergy, Bloomberg reports.
Exelon has committed to refueling FitzPatrick in January 2017 and does not anticipate any immediate change to staffing levels at the plant, which normally employs about 600 people. At the same time he has called for the closure of the state’s fourth nuclear plant, the Entergy-owned Indian Point facility on the Hudson River just north of New York City, saying it is located too close to the nation’s largest population center. “We look forward … to continue to delivering to NY the environmental, economic and grid reliability benefits of this important energy asset”, he said.
Last month, the two companies had announced they were exploring a deal for FitzPatrick, but warned they were contingent on the state approving the nuclear subsidy.
“Keeping this clean energy resource running means NY will not lose the progress we’ve already made in reducing harmful carbon emissions while we ramp up renewables to meet the Governor’s mandate for 50 percent renewables by 2030”, said Richard Kauffman, chairman of energy and finance for NY. The PSC justifies this subsidy on the fact that nuclear plants can reliably generate electricity 24 hours a day, seven days a week without emitting CO2. Cuomo said a closure could have caused a financial crisis in central NY.
“The supports provided in that decision keep the FitzPatrick plant viable and that means its hundreds of employees will still have jobs after January”, she said in a statement.
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Cuomo banned the hydrofracking of natural gas in NY state, though many existing power plants still use it, piped in from other states.
