Albany -
The New York State Public Service Commission (Commission) today
announced approval of the sale of the James A. FitzPatrick nuclear power
plant in Scriba to Exelon Corporation. The transfer will facilitate the
continued operation of the carbon-neutral plant as a bridge to a
renewable energy future without the need for imported fossil fuels such
as fracked gas and oil from out of state or for the restarting of coal
plants to supply energy demand from across the state. Today's action
also better enables the State to reach its 40 percent by 2030 carbon
reduction goals and supports the Clean Energy Standard, the most
comprehensive and ambitious plan in the state’s history to fight climate
change, reduce harmful air pollution, and ensure a diverse and reliable
energy supply at affordable prices for all New Yorkers.
“Our finding today is
that the public will be well-served by the transfer of ownership of
FitzPatrick,” said Commission Chair Audrey Zibelman. “Exelon has an
excellent track record as the owner of nuclear power plants, and we
fully expect it will operate FitzPatrick in a safe and reliable
fashion.”
The Clean Energy
Standard obtains zero-emissions credits from upstate nuclear power
plants to ensure that critical progress on greenhouse gas emissions
reductions is sustained as the state works toward achieving its goal to
generate 50 percent of New York’s electricity from renewable energy
sources like wind and solar by 2030. Maintaining zero-emission nuclear
power is a critical element to achieving New York’s ambitious climate
goals. Were Fitzpatrick to close, carbon emissions in New York will
increase by more than 31 million metric tons during the next two years,
resulting in public health and other societal costs of at least $1.4
billion according to studies conducted by the Brattle Group.
Under the terms of the
agreement, Entergy Corporation will transfer Fitzpatrick's operating
license to Exelon for $110 million. If the other regulatory approvals
are obtained and the transaction closes, Entergy would then transfer the
plant to Exelon.
The 838-megawatt Oswego
County facility, currently owned by Entergy, provides enough carbon-free
electricity to power more than 800,000 average-sized homes. Keeping the
emissions-free plant operational will avoid three million tons of
carbon emissions annually – representing about 10 percent of the state's
carbon savings.
FitzPatrick’s continued
operation is essential to New York’s nation-leading efforts to power the
state with 50 percent renewable energy by 2030. The power plant employs
approximately 600 highly-skilled, well-paid workers, and contributes
about $500 million per year in regional economic activity. FitzPatrick
also accounts for $17.3 million in local property taxes supporting
critical services to local governments and schools.
Final transaction
closure is dependent upon regulatory review and approval by federal
agencies, including the US Department of Justice, the Nuclear Regulatory
Commission, and the Federal Energy Regulatory Commission. The
transaction is expected to close in the second quarter of 2017.
Exelon operates two
other nuclear energy facilities in upstate New York: R.E. Ginna and Nine
Mile Point, the latter of which is near FitzPatrick. Together, Exelon’s
two upstate plants provide carbon-free electricity to more than 2.5
million homes and businesses while employing more than 1,500 full-time
staff.
As a result of Governor
Cuomo’s Clean Energy Standard, Exelon will reinvest millions back into
the nuclear units, including upwards of $500 million in operations,
integration and refueling expenditures for the upstate plants in spring
of 2017, all of which will have a positive impact across the state.
Exelon has committed to refueling FitzPatrick in January 2017.
The Clean Energy
Standard builds on the progress made under New York’s Renewable
Portfolio Standard (RPS) and is a central component of Reforming the
Energy Vision, Governor Cuomo’s strategy to fight climate change and
grow New York’s economy by building a cleaner, more resilient and
affordable energy system for all New Yorkers. Under the RPS, 65 large
scale renewable energy projects have been developed around the state,
adding approximately 2,000 megawatts of renewable capacity to the New
York energy market, with additional projects expected soon under the
final phase of the RPS program.
Today’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov
and entering Case Number 16-E-0472 in the input box labeled "Search for
Case/Matter Number". Many libraries offer free Internet access.
Commission documents may also be obtained from the Commission’s Files
Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500).
Source: Public Service Commission
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