By Editors of Power Engineering
Entergy Corp. announced the company plans to shut down the 811-MW Palisades nuclear power plant permanently on Oct. 1.
The announcement also noted the company will end the Palisades’ power purchase agreement with CMS Energy in 2018. The original agreement ran through April 2022.
The move will lower costs to ratepayers by up to $172 million over four years.
“Entergy recognizes the consequences of a Palisades shutdown for our approximately 600 employees who have run the plant safely and reliably, and for the surrounding community, and we will work closely with both to provide support during the transition,” said Leo Denault, Entergy’s chairman and CEO. “We determined that a shutdown in 2018 is prudent when comparing the transaction to the business risks of continued operation.”
As part of the move, Entergy and the Consumers Energy Foundation will provide $10 million over several years in economic development funding for the Southwest Michigan region.
Entergy purchased Palisades from Consumers Energy in 2007, and the company noted market conditions have changed significantly since then.
The company plans to ask the Michigan Public Service Commission to approve the early termination of the PPA, and will notify Midcontinent Independent System Operator and the NRC of its intent to permanently shut down Palisades.
As a result of the closure, Entergy will have a non-cash impairment charge of $390 million.