The Federal Energy Regulatory Commission on Wednesday approved the $110 million sale of the James A. FitzPatrick Nuclear Power Plant in New York from Entergy to Exelon, while also dismissing Public Citizen’s challenge to the deal.
The consumer rights’ group in an October filing asked FERC to reject the application, claiming it will adversely affect New York’s power market. Entergy had planned to closed the plant; instead, it agreed to sell the facility in August, after the New York Public Service Commission (NYPSC) approved Gov. Andrew Cuomo’s Clean Energy Standard, which is expected to pay upstate nuclear power plant operators nearly $8 billion in energy subsidies over the program’s lifetime.
Exelon would own all three upstate nuclear plants if the deal closes, as it already owns the R.E. Ginna Nuclear Power Plant and Nine Mile Point Nuclear Station. The deal, which is expected to close in the second quarter of 2017, also requires approvals from the Nuclear Regulatory Commission, the NYPSC (which approved the sale in November), and the Department of Justice.
Public Citizen in its FERC filing claimed the application was incomplete, demanding that Exelon and Entergy redo their market power analysis and resubmit the results to the regulator for further assessment. The group also questioned whether Cuomo’s zero-emission credits violate FERC rules.
FERC on Wednesday authorized the transaction, saying the deal is consistent with the public interest, and that it would not adversely affect horizontal or vertical competition.
FERC also said the impact of Cuomo’s zero-emission-credit program on New York’s power market is outside the scope of the federal commission’s proceedings. The FERC order says the commission focuses on whether the transaction itself will have an adverse impact on competition, rates, and regulation.
“Public Citizen’s concerns are not relevant to the Commission’s analysis of the Proposed Transaction under FPA section 203 and we find that they are not properly raised in this proceeding,” FERC’s order reads. “Moreover, Applicants have demonstrated that the Proposed Transaction will not have an adverse impact on competition, and Public Citizen has not demonstrated otherwise or adequately supported the claim that the Application remains incomplete.”
NRC Approves Time Extensions on Fukushima Safety Measures at FitzPatrick
The Nuclear Regulatory Commission has approved two of Entergy’s requests for additional time to comply with post-Fukushima safety equipment updates at FitzPatrick, while agency staff recommended the commission deny a hearing request on the matter.
The NRC ordered a series of design improvements for American nuclear reactors following the 2011 triple meltdown at the Fukushima Daiichi nuclear power plant in Japan, which occurred after a magnitude 9.0 earthquake triggered a 15-meter tsunami.
The agency approved Entergy’s extensions to June 2017 for the following: the requirement to install equipment and strategies to cope with significant earthquakes and other disastrous events; and a requirement to install equipment that enables more informative water-level and temperature readings concerning spent fuel pools. Entergy’s original deadline to comply with the two orders in question was no later than two refueling cycles after the company’s submission of the overall integrated plan, or Dec. 31, 2016, whichever came first.
Two antinuclear groups, Beyond Nuclear and the Alliance for a Green Economy (AGREE), had requested an NRC hearing on the matter and suggested the agency deny Entergy’s schedule relaxation requests. The groups have said the extension requests actually amount to a license amendment request and therefore should be subject to a public hearing in order to protect public safety.
NRC staff on Monday recommended that the commission deny the hearing request, claiming that the groups are not entitled to a hearing under the Atomic Energy Act or agency regulations. Additionally, NRC staff argued that the petitioners have not established standing for a hearing, nor have they submitted an admissible contention. The staff in its response, which was made public Tuesday, advised against turning the licensing proceeding into an “amorphous public extravaganza.”
The agency is still considering Entergy’s request for a deadline extension for installation of a reliable hardened vent for the plant’s wetwell, which is a doughnut-shaped reservoir of water at the base of the reactor containment building. Entergy is asking to move its installation deadline from January 2017 to June 2018.
