Palisades: Dumb Idea

For a nuclear plant to operate properly they need a secure and reliable source of funding. These guys are throttling money to this plant thinking within a few years it will be shutdown. They were never designed for this kind of funding. I think Entergy is prioritizing resources going into their plants. This guy would be on the bottom of the list with prioritization.

Do you think this was a result of the Trump election.  

Entergy to continue operating Palisades nuclear power plant until Spring 2022

September 28, 2017

By PennEnergy Editorial Staff

Source: Entergy

 Entergy Corporation plans to operate Palisades nuclear power plant in Covert, Michigan, until the spring of 2022, under the existing Power Purchase Agreement (PPA) with Consumers Energy.

“In light of the Michigan Public Service Commission’s order issued September 22, which granted Consumers Energy recovery of only $136.6 million of the $172 million it requested for the buyout of the PPA, the parties have agreed to terminate the buyout transaction,” said Charlie Arnone, site vice president and Entergy’s top official at Palisades.

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This announcement reverses Entergy’s December 2016 decision to close Palisades on October 1, 2018, but Entergy remains committed to its strategy of exiting the merchant nuclear power business.

The impact of the decision on free cash flow is expected to be positive $100 million to $150 million compared to the PPA amendment with Consumers Energy. In addition, due to the change in operating assumptions, under applicable accounting rules we no longer expect fuel, refueling outage costs and capital expenditures to be expensed as incurred. Instead, these expenditures will be amortized or depreciated over their useful lives and the expense will be included in operational results.