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Trump Administration Seeking to Save Nuclear Power Plants?

Uranium (Nuclear Minerals) / Nuclear Power - Economics, Design, & Industry

Date posted: 12/12/16

Tom Henry reports that President-elect Donald Trump advisers are seeking help from the U.S. Department of Energy on ways they might stave off more premature closures of nuclear plants struggling because of intense competition from natural gas and renewable energy. The move comes one day after another nuclear plant appears headed for premature closure because of failing economics. It might help FirstEnergy Corp. Beaver Valley plant near Pittsburgh, the Davis-Besse nuclear plant in Ohio, and the DTE Energy Fermi 2 nuclear plant in Ohio remain in the mix.

Jennifer Young, FirstEnergy spokeswoman, said the utility welcomes the news of the Trump administration support. Despite their clear benefits, nuclear plants across the country are facing challenges driven by wholesale markets that do not recognize nuclear plant total value. She said that they encourage and support policies that reflect and preserve the value nuclear units provide.

The Nuclear Energy Institute, the Washington-based lobbying arm, made reference to financial help the states of Illinois and New York recently made, which critics have labeled as bailouts that run counter to free market principles.

Federal and state leaders must act urgently to preserve at-risk nuclear energy facilities, just like lawmakers and agency officials in Illinois and New York have done, to help achieve a stronger economy, cleaner air, and enhanced energy diversity and security, Maria Korsnick, NEI chief operating officer, said.

The industry has called for nuclear attributes to be more recognized in the market now that the fracking boom has brought plentiful and historically low natural gas prices and made it nearly impossible for nuclear to compete in 13 states with deregulated electricity markets.

New Orleans-based Entergy Corp. announced it will shut down the Palisades nuclear plant it owns and operates in southwestern Michigan Van Buren County, along the Lake Michigan shoreline, on Oct. 1, 2018, unless it is reprieved.