Nuclear plant closings overwhelm small towns
OAK HARBOR, Ohio — Living in the shadows of the Davis-Besse nuclear power plant’s cooling tower that soars above Lake Erie in Ohio like an oversized lighthouse brings with it some give-and-take.
On the plus side, it generates tax money that once paid for a high school swimming pool and auditorium. Then there are the stockpiles of radiation pills and emergency drills for students in case of a disaster.
For the small, mostly rural towns that are home to 61 U.S. nuclear plants that produce one-fifth of the nation’s electricity, each one has been like the golden goose supplying high-paying jobs and money for roads, police and libraries.
But those same places and their residents are bracing for what may come next due to the soaring costs of running aging reactors that have speeded up the closings of a handful of sites and are threatening at least a dozen more. That’s because once the power stops flowing, so does the money.
Towns that already have seen nuclear plants shuttered are now dealing with higher property taxes, cuts in services and less school funding — a new reality that may linger for decades.
In Wisconsin, the tiny town of Carlton saw the source of roughly 70 percent of its yearly budget disappear when the Kewaunee nuclear power plant closed four years ago. That resulted in the first town tax in its history.
“Financially, we benefited, but now we’re going to pay the price for the next 40 years,” said David Hardtke, the town chairman.
When operations ceased at the Crystal River Nuclear Plant along Florida’s Gulf Coast, “it was like something going through and wiping out a third of your county,” said Citrus County Administrator Randy Oliver.
To make up the difference, property tax rates went up by 31 percent and 100 county workers were let go — so many that Mr. Oliver worries there won’t be enough to evacuate residents and clear roads if a major tropical storm hits.
While the nation’s fleet of nuclear power plants wasn’t designed to last forever, closures are happening earlier than expected because repair costs are astronomical and it’s harder to compete with cheaper natural gasfired plants and renewable energy sources.
The former head of the nuclear industry’s trade group said last year that economic pressures have put 15 to 20 plants at risk of a premature shutdown.
FirstEnergy Corp. will decide by next year whether to close or sell its plant in Pennsylvania and two in Ohio, including Davis-Besse, unless the states change regulations to make them more competitive.
The uncertainty around Davis-Besse and a plan to lower its value caused the local school board to shelve plans to build a new elementary building for the district, which stands to lose $8 million a year without the plant.