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Entergy’s troubled Palisades nuclear power plant for early shutdown

nuclear-dominoesFlag-USAEntergy strikes deal with Michigan utility, will shut Palisades nuke plant ADVOCATE STAFF REPORT, DEC 8, 2016 

A deal with Michigan’s largest utility will result in Entergy Corp. permanently shutting down the troubled Palisades nuclear power plant in 2018, four years earlier than the New Orleans-based company could have under an earlier contract.

Entergy bought the plant from Consumers Energy in 2007. The original agreement required Consumers Energy to purchase nearly all of the power the plant generated through April 2022. But market conditions have changed substantially since the purchase, with much cheaper power alternatives now available.

 Consumers Energy will pay Entergy $172 million, half the $344 million the Michigan utility expects to save by buying power elsewhere over four years, for an early end to the original deal.

Consumers Energy customers’ costs will drop by as much as $172 million over four years, according to Entergy. Assuming regulators approve, Entergy intends to shut down the Palisades plant on Oct. 1, 2018.

 The plant closure will affect around 600 workers. Entergy will also provide $8 million and Consumers Energy Foundation $2 million over several years to fund economic development efforts for the Southwest Michigan region.

Palisades was shut down eight times between 2012 and 2014, according to Michigan Radio. The plant shut down again in September after part of the turbine generation system, just days ahead of a scheduled maintenance shut down.

December 9, 2016 - Posted by | business and costs, USA

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