Unintended Consequences of Poorly Designed Market Structure and Government Policies Lead to Premature Shutdown
VERNON, Vt. (December 29, 2014) – Nuclear
Matters co-chair, former Senator Judd Gregg (R-NH), issued the
following statement on the closure of the Vermont Yankee Nuclear Power
Plant, owned by Entergy Corporation, which took effect today:
“The premature retirement of Vermont Yankee is representative of a
problem that the entire country faces. Too many well-functioning
nuclear energy facilities – most of which have decades of useful
operating life remaining – are at risk of closure or have announced
their early retirement. These conditions, including those surrounding
Vermont Yankee’s, are caused by the unintended consequences of poorly
designed market structure and government policies, not by the economic
fundamentals of nuclear energy. This also signifies the importance of
fuel diversity for power generation in the United States. Now is the
time for all stakeholders to consider what can be done to prevent
additional closures for the sake of electricity consumers, the
environment, employees, communities, and the reliability of the electric
grid.
“Vermont Yankee’s closure is especially concerning as we head into
the Northeast winter, given that nuclear performed at a much higher
capacity factor than any other fuel source during last year’s Polar
Vortex. In addition, the plant contributes more than $60 million to the
local economy each year through financial contributions, taxes paid,
and employee involvement. Since 2002, having the facility on-line has
saved New England customers approximately $330 million in electricity
rate savings compared to the price of purchasing that same power from
the spot market. Over the years, Vermont Yankee has prevented more than
50 million tons of carbon dioxide and other pollutants from being
released into the environment. This is especially noteworthy as
officials from New England’s grid operator have noted that the energy
from Vermont Yankee will likely be replaced by other, carbon-emitting
fuels. Finally, this closure means that hundreds of jobs will be lost,
with company officials announcing that in January 2015, the plant’s
staff will be reduced from about 550 employees to 316, with subsequent
cuts planned after that.
“Signs of stress in our country’s reliable electricity grid cannot be
ignored. It is simply unsustainable for the United States to continue
down the path of allowing nuclear energy plants to close. Regulators,
policymakers and industry must work together to ensure that nuclear
energy is properly valued as a reliable, affordable and carbon-free
electricity resource that is essential to America’s energy future and
diverse fuel mix, and to ensure that existing nuclear plants are
properly recognized in electricity markets for the value that they
provide. Nuclear energy is safe, reliable, secure, and 100 percent
carbon-free. This 24-7, 365 always-on source of electricity is key to
our country’s success.”
About Nuclear Matters
The mission of Nuclear Matters is to inform the public about the
clear benefits that nuclear energy provides to our nation, to raise
awareness of the economic challenges to nuclear energy that threaten
those benefits, and to work with stakeholders to explore possible policy
solutions that properly value nuclear energy as a reliable, affordable
and carbon-free electricity resource that is essential to America’s
energy future.
Supporters of Nuclear Matters include a range of companies and
organizations in the energy industry, including Ameren Missouri,
American Nuclear Insurers, Arizona Public Service Company, AREVA, Black
& Veatch, Burns and Roe Enterprises Inc., Centrus Energy Corp.
Dominion, Duke Energy, Energy Future Holdings Corporation, Energy
Northwest, Entergy Corporation, Exelon Corporation, FirstEnergy
Corporation, GE Hitachi Nuclear Energy, Lightbridge Corporation,
Nebraska Public Power District, NextEra Energy Inc., Omaha Public Power
District, Pacific Gas and Electric Company, South Texas Project Nuclear
Operating Company, Southern Company, Tennessee Valley Authority, and
Westinghouse Electric Corporation.
Media Contacts
For Nuclear Matters:
Emma Post
(212) 446-1878
epost@sloanepr.com
Joe Germani
(212) 446-1899
jgermani@sloanepr.com