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Energy Secretary Chris Wright on April 22 announced the release of the third loan disbursement to Holtec for the reopening of the Palisades Nuclear Plant in Michigan.
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Marking the first-ever revival of a nuclear power plant in the U.S., the Department of Energy (DOE) on Sept. 30 finalized a $ 1.52 billion loan guarantee to Holtec International to […]
The post DOE Finalizes $ 1.52B Palisades Loan for First-Ever U.S. Nuclear Plant Recommissioning appeared first on POWER Magazine.
Entergy Corp. will keep the Palisades nuclear power plant in Covert, Michigan, open until the spring of 2022, owing to a shortfall in recovery granted to Consumers Energy by state regulators.
In a bid to actively exit the merchant nuclear power business, investor-owned Entergy had decided to shutter the 798-MW plant by October 1, 2018. “Market conditions have changed substantially, and more economic alternatives are now available to provide reliable power to the region,” it said when it announced its decision about a year ago.
The decision came as a surprise because Entergy has a power purchase agreement with Consumers Energy—Michigan’s largest utility and the principal subsidiary of CMS Energy—which committed the company to buying nearly all the power generated at Palisades through April 2022. Entergy reasoned the plant’s closure could save Consumers’ customers as much as $ 172 million over four years, even after Consumers paid Entergy $ 172 million to terminate the contract.
On September 22, however, the Michigan Public Service Commission granted Consumers a recovery of only $ 136.6 million of the $ 172 million it requested for the buyout of the power purchase agreement. …
Entergy Corp. has decided to permanently close the Palisades nuclear power plant on October 1, 2018.
The news comes as a bit of a surprise, because Entergy had a power purchase agreement with Consumers Energy—Michigan’s largest utility and the principal subsidiary of CMS Energy—which committed the company to buying nearly all of the power generated at Palisades through April 2022.
Late last year, however, UBS utilities analyst Julien Dumoulin-Smith suggested that the contract appeared to be potentially break-even or under water. Terminating the deal early was presumably the best option for both companies.
In a press release, Entergy said Consumers’ customers would save as much as $ 172 million over four years, even after paying Entergy $ 172 million to terminate the contract. The early termination payment is expected to “help assure the plant’s transition from operations to decommissioning.”
The 798-MW plant located about five miles south of South Haven, Mich., faced economic difficulties similar to other single-unit facilities, such as the recently closed Fort Calhoun Plant, and the R.E.…