The News Herald (Willoughby, OH)
Perry Nuclear Power Plant to close
Scheduled decommissioning wouldn’t take place until 2021
FirstEnergy Solutions announced on March 28 that it plans to close three of its nuclear power plants, including the Perry Nuclear Power Plant in North Perry Village.
In a news release issued early during the evening of March 28, Akron-based FirstEnergy Solutions stated that it notified PJM Interconnection, the regional transmission organization, that two of its Ohio nuclear power plants — Perry and Davis-Besse Nuclear Power Station in Oak Harbor — and the Beaver Valley Power Station in Shippingport, Pennsylvania, will be deactivated in the next three years.
FirstEnergy Solutions, a competitive generation subsidiary of FirstEnergy Corp., said it plans to decommission Perry Nuclear Power Plant and Beaver Valley Nuclear Power Station in 2021; and Davis-Besse Nuclear Power Station in 2020.
The plants are struggling to compete with the cheaper cost of natural gas, according to a previous News-Herald article. The Perry Nuclear Power Plant employs more than 700 people.
“The decision to deactivate these facilities is very difficult and in no way a reflection on the dedicated, hard-working employees who operate the plants safely and reliably or on the local communities and union leaders who have advocated passionately on their behalf,” said Don Moul, president of FES Generation Companies and chief nuclear officer. “Though the plants have taken aggressive measures to cut costs, the market challenges facing these units are beyond their control.” The total capacity of the nuclear plants to be deactivated is 4,048 megawatts. In 2017, the nuclear units contributed about 65 percent of the electricity produced by the FirstEnergy Solutions generating fleet, the news release stated.
The Nuclear Regulatory Commission has been verbally notified of the deactivations, and a required written notification will be made to the agency within 30 days. In addition, notifications were made to the Institute of Nuclear Power Operations and Nuclear Energy Institute, organizations that support the U.S. nuclear industry.
In the interim, the plants will continue normal operations, as FirstEnergy Solutions seeks legislative policy solutions as an alternative to deactivation or sale.
Lake County Commissioner Jerry Cirino said the announcements of the plant closings coincides with the expectation of FirstEnergy Solutions filing for bankruptcy.
“I believe that this filing will occur this Friday, March 30, preceding the bond default of early next week,” Cirino stated in a Facebook post on March 28. “The timing of both actions fits the narrative we have heard before.”
Moody’s Investors Services downgraded the bond rating of FirstEnergy Solutions on Jan. 23. Moody’s stated it is highly likely the subsidiary will default on a $100 million bond payment in early April that will result in bondholders losing a significant percentage of their investments.
In January, the Federal Energy Regulatory Commission voted against a proposal from U.S. Energy Secretary Rick Perry to provide assistance for coal and nuclear energy generators. In its decision, the FERC board pushed the issue down to regional energy markets, which in Ohio’s case would be PJM Interconnection. FERC directed the operators of the regional wholesale power markets to “provide information as to whether FERC and the markets need to take additional action on resilience of the bulk power system.”
The two-year-plus lead time for decommissioning all three plants is needed to make the complex preparations for a potential plant deactivation. These steps include preparing a detailed decommissioning plan and working with the NRC to amend plant licenses, the news release stated.
Cirino, in his Facebook post, urged residents not to panic about FirstEnergy Solutions’ announcement and pledged to use “every ounce of energy and experience” that he has to keep the Perry Nuclear Power Plant open.
“We are just moving into the next phase of dealing with the bankruptcy court, who will determine what to do with the assets of the Perry facility,” Cirino said. “I am hopeful that, with these events behind us, we will be able to drive for a solution that will involve the feds, PJM. FERC and a brand new governor who actually cares about our community.”
“The decision to deactivate these facilities is very difficult and in no way a reflection on the dedicated, hard-working employees who operate the plants safely and reliably or on the local communities and union leaders who have advocated passionately on their behalf.” — Don Moul, president of FES Generation Companies and chief nuclear officer