Closing Indian Point nuclear power plant will be costly, report states

The Center for Energy Policy and the Environment at the Manhattan Institute has released a report on the economic consequences of closing the 2,069 MW Indian Point Energy Center in Buchanan, N.Y., about 40 miles north of New York City. The Indian Point nuclear power plant is owned and operated by Entergy Corp (NYSE: ETR). The plant houses three units, one of which is no longer in service. The operating reactors, Units 2 and 3, have been in service since 1974 and 1976, respectively, and combined have generated more than 250 billion kWh of electricity.

The report’s author, Jonathan A. Lesser,  president of Continental Economics Inc., an economic and litigation consulting firm specializing in issues affecting the energy industry, wrote that because the Indian Point plant “provides significant quantities of round-the-clock electricity to the New York City area and because of long-standing constraints that limit how much electricity can be imported from upstate New York, New England, New Jersey, and elsewhere, closing IPEC would require the development of higher-cost alternatives.”

The report cited alternatives such as building new natural gas-fired power plants in southeastern New York; building additional high-voltage transmission lines; building renewable generation; implementing more aggressive energy-conservation measures; or a combination of all four approaches.

The report found that closing Indian Point would increase average annual electric expenditures in New York State by $1.5 billion–$2.2 billion over a 15-year period from 2016 to 2030.

“The effects of these higher electricity costs absorbed by customers would ripple through the New York economy,” Lesser wrote in the summary of the report.

Click here to read the full report

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