SCRIBA, N.Y. — Entergy Corp. (NYSE: ETR) will close the James A. FitzPatrick Nuclear Power Plant in Scriba in late 2016 or early 2017.
The FitzPatrick plant employs more than 600 workers, who will lose their jobs.
The decision to close the plant is based on the “continued deteriorating economics of the facility,” the New Orleans–based firm said in a news release issued Monday.
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Entergy cited “key drivers” that include “significantly reduced” plant revenues due to low natural gas prices; a “poor” market design that “fails” to properly compensate nuclear generators like FitzPatrick for their benefits, as well as high operational costs.
“Given the financial challenges our merchant power plants face from sustained wholesale power price declines and other unfavorable market conditions, we have been assessing each asset,” Leo Denault, Entergy’s chairman and CEO, said. “As part of this review, we previously announced the closure of the Pilgrim nuclear generating station in Massachusetts and have now decided that despite good operational performance, market conditions require us to also close the FitzPatrick nuclear plant.”
Entergy is telling the New York Independent System Operator, the operator of the state’s electric grid, and the New York State Public Service Commission that it will retire the plant at the end of the current fuel cycle.
The FitzPatrick plant has been a part of the Oswego County community since it began generating electricity in 1975, Entergy said.
Reaction
The plant’s closure will “devastate the lives” of its more than 600 employees and their families, Gov. Andrew Cuomo said in a statement his office issued early Monday afternoon.
“Good corporate citizenship must appreciate that there are many factors that count as the ‘bottom line.’ The state of New York will pursue every legal and regulatory avenue in an attempt to stop Entergy’s actions and its callous disregard for their skilled and loyal workforce,” Cuomo said.
At the same time, two members of the New York delegation in the U.S. House of Representatives say they were “incredibly disappointed” to hear about Entergy’s decision.
“As our community moves forward, we will do everything that we can to support FitzPatrick employees, their families, local leaders and all of Oswego County. There is no question that the plant’s closure would be a huge loss to our region,” John Katko (R–Camillus) and Richard Hanna (R–Barneveld) said in a joint statement issued Monday morning.
The lawmakers note that Entergy has been in talks with the state of New York about the plant’s future.
“We hope the company will detail these conversations and inform the community as to what efforts were made to prevent the closure of the plant,” Katko and Hanna said in their statement.
They also “urge” the company and the state to continue their dialogue “in the hopes of reversing the decision.”
“Absent a solution, our hope is that the company and the state will do everything possible to mitigate the challenges faced by the community,” the lawmakers said.
The FitzPatrick facility produces enough electricity to power more than 800,000 homes.
Contact Reinhardt at ereinhardt@cnybj.com
