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Entergy Officials: Replacing Indian Point Too Costly

Officials from Entergy, the company that runs the Indian Point Energy Center, commented on the contingency plan created by Con Ed and New York Power Authority in the event of Indian Point's shutdown,

Editor's Note: The following statement was sent by Entergy. If you would like to post your news to Patch, click here

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Entergy’s New York Subsidiaries File Comments in New York State Public Service Commission Proceeding Companies Urge Commission to Protect Electric Customers from Unnecessary Rate Increases

White Plains, NY— Entergy Corporation’s (NYSE: ETR) New York subsidiaries today filed comments with the New York State Public Service Commission (“PSC”) regarding a proposed reliability contingency plan (“RCP”) meant to address the premature retirement of the Indian Point Energy Center.  The RCP, filed jointly by Con Edison and the New York Power

Authority at the direction of the New York PSC, proposes to immediately begin billing New York electric customers at least $800 million for a series of electric transmission projects, along with another energy efficiency program, to address the potential impacts on the electric grid in the event the Nuclear Regulatory Commission (“NRC”) ultimately declines to issue renewed licenses for Indian Point.  According to the RCP, customers throughout New York State would be billed for the projects – including those who live upstate and on Long Island.

In their comments, the Entergy companies urged the New York PSC to require the utilities to submit more information prior to taking any actions that will raise customers’ electric rates.  “The RCP fails to acknowledge the substantial likelihood that Indian Point will continue to operate, it lacks sufficient information for a meaningful review of the proposed projects or other alternatives, and it fails to demonstrate that – with a price tag of at least $800 million – it is most cost-effective solution for New York electric customers,” said Mike Twomey, vice president of external affairs for Entergy Wholesale Commodities. 

According to the most recently published data from the U.S. Energy Information

Administration for 2012 (covering the period from Jan. 1, 2012, through Nov. 30, 2012), New

York residential customers paid the highest electric rates in the continental United States – and nearly 50 percent higher than the national average.  “Rather than asking New York customers to pay hundreds of millions of dollars for a contingency plan that might not be needed, New York

could support the license renewal effort for Indian Point now pending at the NRC to help ensure that this safe, clean, and reliable resource remains part of New York’s energy portfolio," Twomey said.

On the issue of whether the RCP projects could be replacements for Indian Point, Twomey said: “The projects have been labeled as alternatives to Indian Point, but they are not replacements for the facility -- they would not replace the substantial economic and air quality benefits that Indian Point provides.  At best, these projects might alleviate some of the reliability consequences of losing Indian Point, but only at a significant cost. Moreover, because the RCP does not include adequate information, it is impossible for the New York PSC to determine the degree to which these projects would even address potential reliability consequences.”

Since purchasing Indian Point more than 10 years ago, Entergy has focused on improving and maintaining the facility, including making investments of more than $1 billion to enhance the reliability, security, and safety of the facility.  Entergy filed a joint license renewal application with the NRC in 2007 and it continues to actively pursue the matter.

Entergy Corporation, which celebrates its 100th birthday this year, is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy Corporation News Release

Entergy owns and operates power plants with approximately 30,000 megawatts of  electric generating capacity, including more than 10,000 megawatts of nuclear power, making it one of the nation’s leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $10 billion and approximately 15,000 employees.

Teleman February 24, 2013 at 12:23 PM
Governor Cuomo and the anti-2nd amendment crowd have created a major security issue at the plant - did you know that the new gun law does not exempt the security officers at Indian Point? Entergy is in the process supposedly of trying to get exemptions so the guards can legally utilize - but as it stands, they will all be in violation of the new laws- you only need 7 bullets to defend a nuclear installation right?
Ann Fanizzi February 24, 2013 at 01:30 PM
@Teleman - the Colorado Court has confirmed the Heller decision that the Second Amendment does not protect concealed weapons. Read it on pg. 17 of Sunday's NYTimes.
Teleman February 24, 2013 at 02:37 PM
What do ANY of my above comments have to do with "concealed weapons"? I am talking about the NY law that was rushed through in the dark of night that didn't exempt police officers and nuclear security officers from it's ridiculous constraints- this has NOTHING to do with "concealed weapons" Wake up!
Bob Rohr February 24, 2013 at 06:46 PM
The biggest danger of Indian Point is that it is old and outdated. When you are speaking about a facility that has the ability to poison an entire region for Centuries, is it worth the risk? If I were them I would start constructing a Natural Gas plant and shut down that Dinosaur when the new plant comes on line. The amount of damage Fukashima will do is not even close to being calculated and won't be for decades.
Teleman February 24, 2013 at 07:36 PM
I am pro-nuclear- I think the new technology in the nuclear sector can go a long way to supplying the energy we need for our future. I do agree that Indian point is old- really old- and we all know it was not designed to be in service this long- plans must certainly be put under way for it's replacement if not already underway.

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