Nuclear plant closings hurting towns

Once an economic boost, aging reactors have astronomical repair costs, causing shutdowns

OAK HARBOR, Ohio — Living in the shadows of the DavisBesse nuclear power plant’s cooling tower, which 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 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 onefifth 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 Oliver worries there won’t be enough to evacuate residents and clear roads if a major tropical storm hits.

Closures are happening earlier than expected because repair costs are astronomical and it’s harder to compete with cheaper natural gas-fired plants.

FirstEnergy Corp. will decide by next year whether to close or sell its plant in Pennsylvania and two in Ohio, including DavisBesse, unless the states change regulations to make them more competitive. How much the losses will add up to isn’t clear yet, said Dennis Palgen, a township supervisor where the plant has operated since 1971.

“We’re just in a state of limbo right now,” he said, adding that plans to buy a new fire truck are on hold.