Entergy Agrees to Close Controversial Indian Point Nuclear Plant -- Update
January 09 2017 - 8:14PM
Dow Jones News
By Ezequiel Minaya
Entergy Corp. said Monday it has agreed to shut down New York's
Indian Point nuclear plant after striking a deal with state
authorities, who have long targeted the facility out of concerns
for its environmental impacts and proximity to New York City.
The company said it would shutter one of two nuclear reactors at
the plant by 2020, with the second following in 2021. In exchange
for closing the plant, located about 30 miles from New York City in
Northern Westchester County, state authorities have agreed to drop
legal challenges against the New Orleans-based company that have
blocked its license renewal from the federal Nuclear Regulatory
Commission since 2007.
Riverkeeper, an environmental nonprofit group which also filed
claims against the company, will also clear the company's path to
license renewal.
The company has also agreed to supplemental safety inspections
from the state in addition to those conducted by NRC officials.
Entergy said it was closing the facility because of low energy
prices that have dented revenue, as well as increased operating
costs.
The company cited competition from natural gas as a key factor
in the closure of Indian Point on Monday, disclosing that it will
recognize a $2.4 billion pretax impairment charge in connection
with the closure of the plant's remaining units.
The plant has long been targeted by Gov. Andrew Cuomo and
environmental activists who have accused the facility of damaging
the environment and aquatic wildlife along the Hudson River.
Entergy has said in the past that it has made necessary
investments and upgrades to ensure safe operations at the site.
New York's Department of State has said the Indian Point plant
is in violation of state coastal management regulations and that it
poses a risk to the 17 million people who live within 50 miles of
it.
The plant generates about 2,000 megawatts of electricity for New
York City and Westchester County. Indian Point Unit 2 began
commercial operation in 1974 and Unit 3 in 1976.
The office of the governor says the state is prepared to
substitute the power provided by the plant.
"The state has more than 2,800 megawatts of replacement power
that is fully permitted and ready to be in service before Indian
Point closes," said James Allen, communications director for the
governor.
--Russell Gold and Cassandra Sweet contributed to this
article.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
January 09, 2017 20:59 ET (01:59 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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