Opposition to Proposed Consumer Bailout of Ginna Nuclear Power Reactor

Strategic Insights -

The New York State Department of Public Service is facing opposition to a proposed consumer bailout of the Ginna nuclear power reactor, owned by Exelon. A strongly worded letter from Sherry Landsman expresses concerns that the subsidy will cost Rochester-area consumers an estimated $175 million extra for electricity and impose unjust hardship on residents, local businesses, and municipalities. Landsman argues that the proposed agreement is unreasonable and goes against the Public Service Commission's mandate to provide safe, reliable service at just and reasonable rates.

Key Takeaways:

  • The proposed agreement between Exelon and Rochester Gas and Electric would subsidize the Ginna nuclear power reactor through October 2018, costing Rochester-area consumers an estimated $175 million extra for electricity.
  • The bailout is unjust and unreasonable, as it will force consumers to pay for an uncompetitive, expensive, and dangerous nuclear power plant.
  • Rochester has the highest rate of extreme poverty of any comparably sized city in the United States, making the price increase particularly burdensome for residents and local businesses.
  • The proposed agreement is unreasonably long, as it does not expire until October 2018, even though a transmission upgrade would eliminate the need for Ginna by summer 2017.
  • Rochester Gas and Electric should be held accountable for its planning failures that led to the need for a bailout, and consumers should not be required to pay for the company's mistakes.
  • It is essential to discuss a decommissioning plan for Ginna with Exelon to ensure that the plant is safely and efficiently closed, and the highly radioactive fuel is properly stored.
  • New York can and should meet its climate goals without Ginna, and the state should prioritize lower cost, safer, and/or cleaner alternatives, including energy conservation, energy efficiency, and renewable energy sources.

Statistics:

  • Estimated cost to Rochester-area consumers: $175 million dollars
  • Extra cost to consumers per month: $4.1 million
  • Rate of extreme poverty in Rochester: highest of any comparably sized city in the United States
  • Timeframe for transmission upgrade completion: summer 2017
  • Length of proposed agreement: through October 2018

Sources:

  • Letter from Sherry Landsman to Secretary Burgess (exact format as provided in the source material)