Fort Calhoun Nuclear Closure Results in $5 Million Penalty

file

By Editors of Power Engineering

Though the Fort Calhoun Nuclear Facility shutdown process is proceeding on schedule, the operators of the plant have been hit by a financial penalty.

Omaha Public Power District will have to pay $5 million to break a 20-year power purchase agreement with Exelon Generation, the Omaha World-Herald reported.

However, OPPD avoided a termination fee of up to $20 million, according to the utility’s financial disclosures. The contract between the two companies specified various fees for different termination circumstances, with OPPD’s reaching $5 million.

Records show that OPPD has paid Exelon more than $94 million from September 2012, when the Chicago company stepped in to help bring the nuclear plant back from a nearly three-year outage, through September 2016. That figure does not include the $5 million fee to end the contract.

Had the utility decided to run the plant through the end of its licensing term in 2033, it would have paid $400 million to Exelon.

The 478-MW Fort Calhoun was the smallest nuclear plant in the nation. Market conditions and a lack of carbon avoidance incentives were cited as reasons for Fort Calhoun’s closure.

Closing the plant is estimated to save OPPD between $735 million and $994 million over the next 20 years. 

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Storm Impact Analytics for Utilities

In recent years, increasingly volatile and extreme weather events have significantly impacted the...

Reach New Heights: Six Best Practices in Planning and Scheduling

These 6 best practices have created millions of dollars in value for many global companies. Learn...

Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...