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Electric utilities

New York State Department of Public Service Faces Criticism Over Ginna Nuclear Power Reactor Bailout

Strategic Insights

— 2 min read

As the state of New York grapples with the future of its energy landscape, a scathing letter from a citizen to the New York State Department of Public Service (NYPSC) has brought attention to the proposed bailout of the Ginna nuclear power reactor. Owned by Exelon, the reactor has been facing economic troubles, and the proposed agreement between Exelon and Rochester Gas and Electric (RG&E) would provide a subsidy until October 2018. Critics argue that this deal is unjust and unreasonable, as it would cost Rochester-area consumers an estimated $175 million extra for electricity. Furthermore, the agreement has been criticized for being unreasonably long, with the contract set to expire in 2018, even though a transmission upgrade could potentially eliminate the need for Ginna by summer 2017. The letter highlights the urgent need for a decommissioning plan, as Exelon is likely to mothball Ginna for 60 years before starting the cleanup process. The author urges the NYPSC to ensure that Exelon begins the decommissioning process as soon as Ginna closes, prioritizes workforce employment, and takes necessary precautions to isolate radiation and toxins.

Key Takeaways:

  • The proposed bailout of the Ginna nuclear power reactor is estimated to cost Rochester-area consumers $175 million extra for electricity.
  • The agreement between Exelon and RG&E is criticized for being unreasonably long, with the contract set to expire in 2018, even though a transmission upgrade could potentially eliminate the need for Ginna by summer 2017.
  • The letter highlights the urgent need for a decommissioning plan, as Exelon is likely to mothball Ginna for 60 years before starting the cleanup process.
  • The author urges the NYPSC to ensure that Exelon begins the decommissioning process as soon as Ginna closes, prioritizes workforce employment, and takes necessary precautions to isolate radiation and toxins.
  • The proposed bailout is seen as a waste of resources, as it props up an unprofitable, aging power plant that is incompatible with New York's vision for a 21st Century renewable energy system.
  • The lack of planning by RG&E has led to the current situation, and the company should bear the costs of the bailout, rather than passing them on to consumers.

Statistics:

  • Estimated cost to Rochester-area consumers: $175 million extra for electricity
  • Length of the contract between Exelon and RG&E: expires in October 2018
  • Potential saving from transmission upgrade: could potentially eliminate the need for Ginna by summer 2017
  • Estimated time for Exelon to begin cleanup: 60 years after mothballing Ginna
  • Estimated cost of decommissioning Ginna: not specified

Sources:

  • Letter from a citizen to the New York State Department of Public Service (exact wording and format as provided)

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