When A Plant Changes Hands
Neil Sheehan
Public Affairs Officer
Region I

In February, Entergy announced plans to permanently shut down the
James A. FitzPatrick nuclear power plant
on Jan. 27, 2017. However, there are indications – based on recent
negotiations between Entergy and Exelon – that the facility may not
cease operations after all.
On Aug. 9, Exelon
announced
it had reached a deal to purchase the Scriba (Oswego County), N.Y.,
boiling-water reactor from Entergy for $110 million. This agreement
occurred after the New York State Public Service Commission approved
Zero Emission Credits, or subsidies, which will help upstate N.Y.
nuclear plants stay online amid historically low energy prices.
Challenging market conditions had earlier prompted Entergy to
announce the plant’s closure. The NRC in 2008 had approved a renewal of
FitzPatrick’s initial 40-year operating license, extending it until
October 2034.
Before the sale of the plant can be completed, the transaction will
undergo reviews by the NRC, as well as other regulatory agencies. NRC
staff will evaluate Exelon’s
technical and financial capabilities
to ensure the plant’s safe operation and to provide reasonable
assurance that adequate funding is available to safely decommission the
unit after the final shutdown has occurred.
Exelon currently owns and operates 22 reactors at 13 plant sites in
the U.S. The company also runs Fort Calhoun under a contract with the
Omaha Public Power District.
We will publish on our website and in the
Federal Register a
notice of having received the license transfer application, dated
August. 18, and the opportunity to request a hearing on the proposal. As
for the process itself, such reviews generally take from six months to a
year. For example, when the FitzPatrick operating license was
transferred from the New York Power Authority to Entergy in 2000, the
review was completed in about half a year.
As a footnote, Exelon already owns the Nine Mile Point nuclear power plant, which is located next-door to FitzPatrick.