By Staff

Jan. 18, 2017:  On January 9, Entergy, the owner of the Indian Point power plant, and New York State Governor Andrew Cuomo announced an agreement that the power plant will cease operations by 2021.

The January 9 press release issued by the governor states: "After extensive litigation and negotiation, Entergy has agreed to end all operations at the facility, with plans to shut down Indian Point Unit 2 as early as April 2020 and Unit 3 in April 2021 – 13 and 14 years earlier than required under the anticipated federal re-licensing terms, respectively. The state will continue to closely monitor Entergy to ensure public safety and mitigate safety risks associated with the plant, including for storage of spent nuclear fuel."

The state has been fighting Indian Point's request for a 20-year renewal of its license, citing '"serious health and safety risks that the plant poses to neighboring communities,'" Attorney General Eric Schneiderman is quoted in the governor's press release as saying. Specifically, the press release says, "Indian Point has been plagued by numerous safety and operational problems, including faulty bolts, and various leaks and fires. The densely populated surrounding region lacks viable evacuation routes in the event of a disaster, and the plant has experienced more than 40 troubling safety and operational events and unit shut-downs since 2012. The plant was also once cited as the most vulnerable to earthquakes in the nation."

The governor's press release quotes the presidents of the environmental organizations Riverkeeper and Scenic Hudson as hailing the settlement as a victory for the health and safety of the people and the environment. However, in its January 9 press release, Entergy counters the state's characterization of the plant as a safety risk by saying, "Inspectors at the US Nuclear Regulatory Commission, with special expertise and training in nuclear power and strict licensing and operational guidelines, ranked the plant in the agency's top regulatory column for safety following more than 6,000 hours of inspections in 2016." 

The company cites low energy prices as a primary factor in its agreement to terminate operations: "'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. . . . Record low gas prices, due primarily to supply from the Marcellus Shale formation, have driven down power prices by about 45 percent,'" said Bill Mohl, president of Entergy Wholesale Commodities." 

According to the press releases, pursuant to the agreement, Entergy, New York State, and Riverkeeper have agreed to terminate outstanding litigation against each other (although the state reserves the right to bring legal action in new cases), and Entergy has agreed to submit a six-year license application leading to closure of the two remaining active reactors by 2020 and 2021 rather than the originally scheduled 2033 and 2035, to undergo additional inspections by the state, to offer employees at the plant jobs at its other locations, and to provide $15 million to benefit the community and the environment.

The state has agreed to allow short-term extension of operations (no later than 2025) in the event of "an emergency situation such as a terrorist attack affecting electricity generation" and has agreed to work with workers to find new job opportunities and secure retraining.

The governer's press release says that "the plant's closure in 2021 will have little to no effect on New Yorkers' electricity bills" and "the agreement allows for ample time to plan for and mitigate impacts to local tax revenues." However, in a January 6 statement on the Westchester County website anticipating announcement of the settlement, Westchester County Executive Rob Astorino proclaims that one of the consequences of the closure will be "skyrocketing energy costs" and that "closing Indian Point will wreak unwarranted economic chaos on the county of Westchester."  

Local constituents are also wary of the consequences of the closure. An article in the Journal News notes that "local officials were concerned about the impact. Hardest hit would be the Hendrick Hudson schools, where Entergy's $23 million annual payment makes up 30 percent of the district's budget. 'If 30 percent of our revenues dry up, we will have to make some dangerous decisions,' said schools Superintendent Joseph Hochreiter. 'It will have real consequences.'"

The article also notes the concerns of Cortlandt Town Supervisor Linda Puglisi, who is calling for a commission to analyze the impact, State Assemblywoman Sandy Galef, D-Ossining, who is concerned about the impact on workers, taxpayers, and local governments, and State Sen. Terrence Murphy, R-Yorktown, who said that he is considering legislative action to block the settlement until there are satisfactory arrangments to handle radioactive waste and to ensure replacement of power.

Pictured here:  Westchester County Executive Rob Astorino.

Photo courtesy the county executive's office