Entergy Corporation has completed the sale of the James A Fitzpatrick nuclear power plant in New York State to Exelon Generation. Exelon agreed to buy the single-unit plant last year after the state adopted a Clean Energy Standard (CES) supporting the continued operation of nuclear capacity.
|Fitzpatrick is now under Exelon's flag (Image:Entergy)
Entergy had announced it would close the 838 MWe boiling water reactor by January this year, for economic reasons. Exelon agreed to buy the plant last August, following the adoption by the New York Public Service Commission of the CES. This explicitly recognises the carbon-free generation provided by New York's upstate nuclear power plants - two units at Nine Mile Point and single units at RE Ginna and James A Fitzpatrick - as critical in enabling it to meet its climate change targets.
The agreement to transfer Fitzpatrick's operating licences, decommissioning trust fund and liability to Exelon is worth $110 million, and required regulatory approval by state and federal agencies including the US Department of Justice, the Nuclear Regulatory Commission, the Federal Energy Regulatory Commission and the New York State Public Service Commission. The transfer of Fitzpatrick to Exelon was formally completed on 31 March.
Exelon CEO Chris Crane said, "We look forward to bringing Fitzpatrick's highly skilled team of professionals into the Exelon Generation nuclear program, and to continue delivering to New York the environmental, economic and grid reliability benefits of this important energy asset."
Exelon has named Joseph Pacher, formerly site vice president at the R E Ginna nuclear power plant, as site vice president of Fitzpatrick. The plant's former site vice president, Bryan Sullivan, was retained by Entergy under the original transaction agreement. Exelon said it does not anticipate any immediate change to staffing levels at the plant, which has about 600 employees.
Exelon said the acquisition of Fitzpatrick was in line with its efforts to preserve existing US nuclear energy facilities and their environmental, economic and reliability benefits. It now operates all of New York's upstate nuclear power plants.
Entergy said completion of the Fitzpatrick transaction was "another step" in its exit from the merchant power business. In January, the company agreed with the state of New York to close the two-unit Indian Point plant - the only nuclear power plant in the state not included in the CES - in 2020-2021.
Researched and written
by World Nuclear News