New York approved subsidies worth about $500 million a year for its money-losing nuclear reactors, the first state to throw such a lifeline to an industry struggling with weak demand and low prices.
The state Public Service Commission voted for the funding as part of a clean energy plan at a meeting in Albany Monday. The decision comes on the day Massachusetts approved legislation that favors renewable power from solar and wind generators but not from nuclear energy.
Shortly after the vote, Exelon Corp. said it would invest about $200 million in two nuclear plants next year and will continue discussions to buy a third from Entergy Corp. that is slated to close. The Massachusetts bill may put New England’s last two reactors out of business, according to the New England Power Generators Association Inc., an industry group.
“Today’s vote helps officially cement New York’s status as a clean energy leader by properly valuing the carbon-free energy that existing nuclear power plants provide,” Carol Browner, a former U.S. Environmental Protection Agency administrator, said in a statement. Browner now serves on the board of Nuclear Matters, an industry proponent.
The New York measure is part of Governor Andrew Cuomo’s initiative to get half the state’s power from renewable sources by 2030. It also calls for the introduction of renewable energy credits to subsidize new or expanded power from solar, wind, hydro, biomass or tidal energy, as well as fuel cells. Credit prices will be set by auction.
Upstate Economy
“We’ll immediately invest hundreds of millions of dollars right back into the upstate economy, which will have a long-term positive impact across the state,” Exelon Chief Executive Officer Chris Crane said in a statement.
The nuclear subsidies remain controversial among some environmental groups who say the aid would be better spent promoting solar and wind power.
“Nuclear energy is not clean and it has no place in a clean energy standard,” Jessica Azulay, program director for the Alliance for a Green Economy based in Syracuse, New York, said Monday in a statement. “We praise the Governor and the Commissioner for supporting renewable energy, but the nuclear subsidies are a mistake and a misuse of public money.”
“We’ll immediately invest hundreds of millions of dollars right back into the upstate economy, which will have a long-term positive impact across the state,” Exelon Chief Executive Officer Chris Crane said in a statement.
The nuclear subsidies remain controversial among some environmental groups who say the aid would be better spent promoting solar and wind power.
“Nuclear energy is not clean and it has no place in a clean energy standard,” Jessica Azulay, program director for the Alliance for a Green Economy based in Syracuse, New York, said Monday in a statement. “We praise the Governor and the Commissioner for supporting renewable energy, but the nuclear subsidies are a mistake and a misuse of public money.”
Carbon Dioxide
The nuclear subsidy, which will be set by the commission based on costs and market prices, is aimed at keeping open three money-losing reactors. Replacing their power would lead to “significant levels” of carbon dioxide from existing and new fossil fuel generators, commission staff said in a July 8 filing.
“New York has taken bold action to become a national leader in the clean energy economy,” Cuomo said Monday in a statement. “I urge all other states to join us in this fight for our very future.”
The nuclear subsidy will amount to $17.48 a megawatt-hour, or about $965 million, in the first two years with the cost passed onto customers based on their power use. It will be adjusted every subsequent two years through 2029 based on market prices and a U.S. government formula that calculates the cost of carbon pollution to society, according to the proposal.
The nuclear subsidy, which will be set by the commission based on costs and market prices, is aimed at keeping open three money-losing reactors. Replacing their power would lead to “significant levels” of carbon dioxide from existing and new fossil fuel generators, commission staff said in a July 8 filing.
“New York has taken bold action to become a national leader in the clean energy economy,” Cuomo said Monday in a statement. “I urge all other states to join us in this fight for our very future.”
The nuclear subsidy will amount to $17.48 a megawatt-hour, or about $965 million, in the first two years with the cost passed onto customers based on their power use. It will be adjusted every subsequent two years through 2029 based on market prices and a U.S. government formula that calculates the cost of carbon pollution to society, according to the proposal.
Labor Support
“Cuomo is going where his constituents want him to go,” Kit Konolige, a Bloomberg Intelligence analyst, said Monday by phone. “The nuclear proposal was supported by labor unions and the upstate plants are far from a concentration of those who are anti-nuclear.”
Entergy last month said it’s in talks to sell the James A. FitzPatrick plant near Oswego to Exelon to sell the by mid-August. Exelon operates the R.E. Ginna and Nine Mile Point nuclear plants in upstate New York.
“Adoption of the clean energy standard is a critical component of our discussions with Exelon on FitzPatrick,” Patricia Kakridas, a Entergy spokeswoman, said Monday by phone. Entergy is still reviewing the final order, she said.
Consumers who don’t want to pay for nuclear power would have the option of buying state-certified “clean power” from new renewable generation in the state, Commission Chair Audrey Zibelman said at Monday’s meeting.
“There are additional costs associated with renewable energy, but the costs of not taking steps now to reduce emissions and protect the planet for future generations are even greater,” Consolidated Edison Inc., owner of New York City’s electric utility, said Monday in an e-mailed statement.
By: Jim Polson (Bloomberg).
Photo: RTO Insider.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
For The #FacebookTeam
“Cuomo is going where his constituents want him to go,” Kit Konolige, a Bloomberg Intelligence analyst, said Monday by phone. “The nuclear proposal was supported by labor unions and the upstate plants are far from a concentration of those who are anti-nuclear.”
Entergy last month said it’s in talks to sell the James A. FitzPatrick plant near Oswego to Exelon to sell the by mid-August. Exelon operates the R.E. Ginna and Nine Mile Point nuclear plants in upstate New York.
“Adoption of the clean energy standard is a critical component of our discussions with Exelon on FitzPatrick,” Patricia Kakridas, a Entergy spokeswoman, said Monday by phone. Entergy is still reviewing the final order, she said.
Consumers who don’t want to pay for nuclear power would have the option of buying state-certified “clean power” from new renewable generation in the state, Commission Chair Audrey Zibelman said at Monday’s meeting.
“There are additional costs associated with renewable energy, but the costs of not taking steps now to reduce emissions and protect the planet for future generations are even greater,” Consolidated Edison Inc., owner of New York City’s electric utility, said Monday in an e-mailed statement.
By: Jim Polson (Bloomberg).
Photo: RTO Insider.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
For The #FacebookTeam