nuclear-news

1. The nuclear subsidy undermines free markets…..By targeting payments to specific nuclear plants, the PSC would discriminate against other energy suppliers, critics say…….

2. The nuclear subsidy might be illegal

Three months ago, the Supreme Court of the United States invalidated a Maryland incentive program for new power plants on the grounds that it interfered with wholesale markets, which operate under federal – not state – authority.

To some observers, including a group of non-nuclear power plant owners and energy suppliers in New York, the Supreme Court’s decision in Hughes v. Talen Energy Marketing is directly applicable to what New York is attempting.

Upstate nuclear plants that receive state-mandated subsidies will have an unfair advantage in the wholesale market and will drive down the prices other power plants can charge, the group argues…..

3. The price of the subsidy is too high

In April, Exelon told the PSC it would need to recover $50 per megawatt-hour to justify the continued operation of its Upstate nuclear plants. But the PSC staff proposal would guarantee the company $56.50 per megawatt-hour, or 13 percent more. And every two years, the minimum price would be revised upward.

Lawyers for the Nucor Steel plant in Auburn suggest that even the $50 price sought by Exelon is more than the nuke operator needs. …..

4. The contract term is too long

According to the long-term price forecast by PSC analysts, wholesale power prices will rise steadily over the next decade until they exceed the price guaranteed to the nuclear plants…….long-term price forecasts are notoriously unreliable. National Grid recommended limiting nuclear subsidy contracts to six years……

5. There has not been enough time to ponder details

This is a big decision. It will affect the Upstate economy and the NY energy industry for years to come. Yet the details of the PSC staff proposal were released just three weeks ago. Comments were accepted for just two weeks…….http://www.syracuse.com/news/index.ssf/2016/07/5_reasonable_criticisms_of_nys_7_billion_plan_to_rescue_nuclear_plants.html