Westchester Power Plant Sold for Cleanup Starting When it Closes in 2021
By Dan Murphy
The news last week that Entergy, owner of the Indian Point Nuclear Power Plant in Buchanan, has sold the plant to Holtec International for decommissioning after the plant closes the last of its three nuclear units in 2021, renews the thought about where will the electrical energy needs of Westchester come from once the plant is closed in less than three years.
The sale includes the transfer of the licenses, spent fuel, decommissioning liabilities, and Nuclear Decommissioning Trusts for the three units. “The sale of Indian Point to Holtec is expected to result in the completion of decommissioning decades sooner than if the site were to remain under Entergy’s ownership,” said Entergy Chairman and Chief Executive Officer Leo Denault. “With its deep experience and technological innovations, Holtec’s ability to decommission Indian Point will benefit stakeholders in the surrounding community.”
Holtec will initiate decommissioning at Indian Point decades sooner than Entergy would have it if continued to own the units. The transaction is subject to several approvals from the Nuclear Regulatory Commission, the New York State Public Service Commission and the NYS Department of Environmental Conservation.
Entergy remains committed to the safe and reliable operation of Indian Point Unit 2 and Unit 3 until they are permanently shut down in 2020 and 2021, respectively. Unit 1 was shut down in 1974.
Holtec and its affiliates specialize in demolition and decommissioning. They will deploy operating processes and methods that enable them to expedite site clean-up and minimize occupational dose to workers. They will also minimize any incidental disruption to the land, water, and air at and around the site.
“Holtec will execute the decommissioning of Indian Point with the same culture of excellence that has undergirded our company’s ascent to a first-tier nuclear technology firm,” said Kris Singh, president and CEO of Holtec International. “Our industry-leading expertise and deep experience permit us to complete decommissioning at Indian Point decades sooner than if Entergy remained the owner and performed decommissioning itself. The potential for the site to be released decades sooner for redevelopment could deliver significant benefits to local community stakeholders and the local economy.”
Holtec will hire Entergy’s employees at Indian Point who are employed at the site for decommissioning. “Holtec looks forward to engaging with site employees, the local community, and other stakeholders over the coming months and years as we discuss our vision for the decommissioning of Indian Point,” said Singh.
For many of us in Westchester who do not follow the energy supply flows in the Hudson Valley and across the Northeast, Indian Point has always been an important party in keeping our electricity flowing. Commercials by Indian Point again and again have pointed to their statement that it provides 25 percent of the energy needs of Westchester and the New York City-metropolitan area.
Two years ago, we asked Westchester resident and member of the Indian Point Safe Energy Coalition Marilyn Elie what would happen to the Westchester energy supply if Indian Point closed.
“Local officials in Ulster, Dutchess, Orange, Westchester and NYC have come out with the same claim in response to the proposed closing of Indian Point with each official claiming that Indian Point produces 25 percent of the electricity for their area,” she said. “They are all very concerned about replacement power. They have been duped and need not worry. The electricity from Indian Point has already been replaced.
“But first, some simple math: Entergy makes 2,060 MW of electricity at Indian Point. According to Con Ed, our peak winter load for NYC and Westchester is 9,000 MW and jumps to 13,000 MW in the summer. Entergy can’t produce a quarter of either of those figures, even if it all of their electricity went into our grid – which it doesn’t. Entergy sells 560 MW to Con Ed and bids 1,500 MW into the summer Mid-Hudson capacity market that serves five counties. In the winter the NY Times and Bloomberg News report that it sends 1,500 MW to the Boston area where a lot of gas is diverted for heating and the price of electricity is high. New York Power Authority, which supplies the subways, Metro-North, municipalities and government buildings, among other things, has not purchased electricity from Indian Point for years because they can get it cheaper elsewhere.
“Replacement power does not have to be new generation. It can come from improvements in the transmission lines, increased efficiency where you get more work out of the same amount of electricity, or from something as simple as ‘demand response,’ where large users are paid to curtail usage at peak times and make extra MW’s available to the grid. There is a mixture of all of that plus new generation in the list below.
“In 2012 Gov. Cuomo directed the Public Service Commission to develop a plan for the closing of Indian Point. All concluded that sufficient planning for renewables coupled with privately financed supply projects would allow a smooth transition away from Indian Point.
“Between 2012 and 2015, market circumstances rapidly changed. The first surprise in 2013 was that both Danskammer and Bowline, which were both out of service and expected to be demolished, were being refurbished and brought back on line as gas generators. This happened largely because a special capacity zone was established by the Independent System Operator to encourage additional generation in this part of the grid. As a consequence, 1,650 MW of unanticipated electricity became available in addition to the transmission accommodations, which were already in place. As a result, the PSC determined that the construction of new power plants was not necessary in order to replace Indian Point. It should be noted that demand for electricity has not increased at the anticipated rate due to efficiency, conservation, and demand response, which allows large users of electricity to be paid to reduce use during peak times. With the emphasis New York State has placed on roof top solar, solar generation will undoubted play a role in smoothing out peak demand, as well.
“We have a surplus of electricity to replace Indian Point, with more megawatts to come. So, a word to the wise – check your facts when they come from a source that stands to profit by them. Do the math and breathe easy. We have a surplus of electricity. Indian Point has already been replaced,” wrote Elie, of the Indian Point Safe Energy Coalition.
Two years later, Elie’s estimates and predictions have all come to pass. Roger Witherspoon, board member of the Society of Environmental Journalists updated us and our readers on the energy needs of Westchester via Indian Point.
“The situation has changed since 2017 in that Entergy’s contract with ConEd, for just 560 MW, expired May 31, 2018 and was not renewed,” he said. “ConEd no longer gets ANY electricity from Entergy, according to the company. Neither does NYPA. Indian Point supplies none of the electricity used in NYC/WC, and hasn’t for nearly a year.
“During peak periods in the summer, ConEd may acquire electricity from the daily or day-ahead markets run by the NY ISO. That does not necessarily mean that electricity purchased through the auctions is from IP. Entergy has had a difficult time competing in the marketplace because their electricity is high compared to juice from natural gas, solar and wind. On occasion during the past year, Entergy has had to file ‘negative bids,’ according to the ISO – which means they were priced out of the auction, but then paid the winner not to produce so they could substitute electricity from IP.
“I interviewed officials at both ConEd and NYPA. In both cases, they said their electricity from Indian Point is not needed. IP was replaced a year ago by the free market. It just takes time for people to realize it,” said Witherspoon, who has resolved the matter once and for all for those of us in Westchester who still wondered what will happen to our electric bills when Indian Point closes, and will there be blackouts.
Our utility bills, whether they come from Con Ed or NYSEG in Westchester, no longer purchase energy from Indian Point. There are cheaper sources of energy, and the two pieces to the energy puzzle here in Westchester and across the country – increasing renewable energy supply and reducing usage through efficiency and by getting large users to reduced their demand during peak hours.
All of these efforts have made Indian Point an energy dinosaur, now obsolete in today’s changing energy environment. The only question that we had for Witherspoon and Elie was why is Con Ed unable to service new natural gas customers in mid-lower Westchester? We hope to answer that question in the weeks to come.
The other takeaway from the sale of Indian Point is how long it will take to clean up and remediate the power plant for the residents of Buchanan and Verplank. Holtec said its acquisition means that the cleanup and removal of nuclear waste at IP will be completed “decades sooner.” How many decades will it now take, once the plant closes for good in 2021?
