FitzPatrick Nuclear Plant Sale to Exelon Is CompletedDavid Wagman | April 02, 2017
Exelon Generation completed a $110 million purchase of the 838 megawatt James A. FitzPatrick Nuclear Power Plant in Scriba, NY. It bought the plant from Entergy in a deal announced in August 2016.
Under the agreement, Entergy transfered FitzPatrick’s operating license to Exelon. The New York Power Authority also agreed to transfer the decommissioning trust fund and liability for FitzPatrick to Entergy.
The nuclear power plant entered service in 1975 and has one General Electric (GE) boiling water reactor. The power plant was originally built by Niagara Mohawk Power Corp. The $110 million purchase price is equivalent to $131 a kilowatt.
Entergy and Exelon announced the sale after the Clean Energy Standard (CES) was adopted in New York. Without the CES, Exelon said the FitzPatrick facility other upstate New York nuclear plants would have been at risk of closure.
The CES created a renewable energy standard (RES) and a zero-emissions credit (ZEC) requirement aimed to help create a low carbon energy system.
The RES requires every load serving entity in the state to procure renewable energy credits associated with new renewable energy resources for their retail customers. If those energy providers cannot demonstrate they are meeting the obligation they may make alternative compliance payments.
The ZEC requirement mandates that power providers buy ZECs from the New York State Energy Research and Development Authority (NYSERDA).
The FitzPatrick nuclear station is considered to be a zero-emissions power plant.
The transaction between Entergy and Exelon received regulatory review and approval by state and federal agencies, including the U.S. Department of Justice, the Nuclear Regulatory Commission, the Federal Energy Regulatory Commission and the New York State Public Service Commission.
With the transaction completed, Exelon Generation named a new site vice president, Joseph Pacher, who was formerly site vice president at R.E. Ginna Nuclear Power Plant. The former site vice president of FitzPatrick, Brian Sullivan, was retained by Entergy as part of the original transaction agreement.
Exelon says that New York’s nuclear plants provide nearly two-thirds of the state's carbon-free electricity. It says that "replacing economically challenged nuclear units would require more fossil fuel generation, which would significantly increase carbon emissions in the state, making it far more difficult and expensive for customers and the state to meet their emissions reduction goals."
Exelon Generation operates two other nuclear energy facilities in upstate New York: R.E. Ginna and Nine Mile Point, which is adjacent to FitzPatrick on Lake Ontario.
The Ginna plant is a 610 MW, single unit Westinghouse 2-Loop pressurized water reactor that entered service in 1970. Both units at Nine Mile Point are GE boiling water reactors. Unit 1 went online in 1969 and has a rated capacity of 609 MW. Unit 2 began operating in 1988 and has a rated capacity of 1,148 MW.