USA TODAY US Edition

Nuclear plant closures send towns into crisis

Maintenanc­e hassles, alternativ­e power sources have depleted industry that sustained rural communitie­s

- Thomas C. Zambito

In many ways, this town of 2,200 on the southern edge of the state has the feel of a place where folks still rely on the land for their living.

But look up, and you’ll catch a glimpse of massive transmissi­on lines extending out from the Vermont Yankee nuclear power plant on the banks of the Connecticu­t River.

When it opened in 1972, Vermont Yankee was in the vanguard of the age of nuclear power generation, offering unimaginab­le job prospects for small-town folks and decades’ worth of flush budgets for Ver- non. Vernon was listed among Vermont’s “gold” towns, on par with moneymakin­g ski meccas such as Stowe to the north.

Then in 2013, Vermont Yankee’s owner, Louisiana-based Entergy, announced it would close its single-unit reactor by the end of 2014. The announceme­nt, though not unexpected, forced Vernon into some difficult decisions as Vermont Yankee employees put homes up for sale, taking with them six-figure incomes that fed the economy for decades. The town’s $2 million budget would need to be cut in half.

Patty O’Donnell found herself at the center of those decisions as chairwoman of the town’s Select Board when the announceme­nt

came. “It was the most difficult thing I had ever been through as an elected official,” she said.

O’Donnell and others quickly decided it was better to look toward the future than sit back and wait while Vernon turned into a ghost town, a common fate of cities and towns slow to respond when a critical source of jobs packs up and leaves.

“We’re used to doing what we need to do for ourselves,” said O’Donnell, a Republican who served as Vernon’s representa­tive in the state Legislatur­e. “It’s what Vermonters are, and it’s what we’ve always been. … No white knight in shining armor is going to show up in our town.”

SIMILAR PLIGHTS

Vernon’s troubles, in many ways, mirror the challenges faced by towns across the USA — from California’s Pacific coast to the Florida’s Gulf Coast — where nuclear power plants shut down.

In recent years, more than a dozen nuclear power plants either have announced plans to close or entered the decades-long process of decommissi­oning their nuclear reactors, according to the federal Nuclear Regulatory Commission.

The cheap price of natural gas, coupled with costly repairs to aging plants, have hastened the nuclear industry’s decline, forcing more and more power companies to cut their losses.

At the end of May, the owners of Three-Mile Island, the Pennsylvan­ia nuclear plant whose meltdown in 1979 hardened the resolve of anti-nuclear activists and inspired a host of industry regulation­s, announced plans to close by 2019.

In January, Entergy announced that in 2021, it will shut down Indian Point, a primary source of electricit­y for New York City and Westcheste­r County for more than four decades.

The numbers tell part of the story.

Before it shut down in 1998, the Zion Nuclear Power Station on the shores of Lake Michigan, 50 miles north of Chicago, paid nearly $20 million to the town that had been its home since 1973. Last year, Zion’s tax income from the plant was about $1.6 million. That translated into fewer cops to patrol a town of about 24,000. Taxes on homes and businesses have more than doubled, and property values have plummeted.

“We can’t draw businesses because the taxes are so high,” Zion Mayor Al Hill said. “And the taxes are so high because we can’t draw businesses.”

Nearly 70% of Zion’s housing stock is in rentals, Hill said. In healthy communitie­s, the figure should be about 23%. Taxes on a $300,000 home have surged from $8,000 to $20,000 per year, he said.

In 2013, Duke Energy shut down the Crystal River Nuclear Plant on Florida’s Gulf Coast, resulting in the loss of 600 highpaying jobs in a region reeling from the downturn in residentia­l constructi­on after the recession.

An attempt in 2009 by the plant’s previous owner, Progress Energy, to replace two 500-ton steam generators cracked the reactor’s containmen­t wall. The plant was built in 1977.

As hundreds of high-paying jobs left the area, residentia­l property values took a dramatic downturn. The average value of a single-family residence plummeted from nearly $154,000 in 2008 to $115,000 in 2016.

Citrus County’s tax base took a painful hit. In 2008, the county’s appraiser pegged the assessment for two parcels on the site at $10.5 million. Last year, the figure was $413,990, county records show.

Duke Energy is building a $1.5 billion natural gas plant at the site that is 40% done and scheduled to open next year. It’s likely to replace just a fraction — 50 to 75 — of the jobs the more labor-intensive nuclear facility provided.

In the aftermath of the shutdown, officials work toward diversifyi­ng the region’s economy. Topping the list is tourism. Crystal River is the largest winter refuge for manatees in Florida, and last year, 53% of the region’s nearly half-million tourists said they came to see the manatees.

On the Pacific coast, north of the city of San Diego, the San Onofre nuclear plant shut down in 2013 after workers discovered premature wear on steam generators.

A thousand workers lost their jobs, and five-and-a-half years lat- er, the plant’s owners, Southern California Edison and San Diego Gas & Electric, say they’re owed about $4.7 billion on their investment.

At issue is whether ratepayers should be on the hook for the money the utilities expected to make by selling electricit­y from San Onofre, as well as maintenanc­e costs and nuclear fuel purchased before the plant was shut down prematurel­y.

The most severe economic consequenc­es of San Onofre’s shutdown have been felt in the plant’s backyard of San Clemente. Businesses relied on a jolt of economic activity from workers who spent months at a time in the area while doing routine maintenanc­e at the plant. Many stayed at hotels.

“They’d be pretty much going out to dinner every night,” said Lynn Wood, the CEO of San Clemente’s Chamber of Commerce. “So we lost all that.”

In Wisconsin, the shutdown in May 2013 of the Kewaunee Power Station, located on 900 acres on the western shore of Lake Michigan, 25 miles southeast of Green Bay, led to the loss of 600 jobs and about $85.5 million in annual salaries. The shutdown was a blow to the power station’s home in Carlton, where cows outnumber the town’s 1,000 residents four to one.

This year, Kewaunee County, which includes Carlton, increased its sales tax a half percent in an attempt to make up for the $750,000 in annual income generated by the power plant.

After the closing, the plant’s owner, Dominion Energy of Virginia, sued Kewaunee County and others disputing assessment­s of the plant’s value. Dominion claimed the plant was worth $1 million.

A settlement set the property’s value at $15 million for the next eight years.

There’s been talk of building a state prison or marketing Kewaunee as a gateway to Door County and its emerging wine industry.

At the height of its power, Ver- mont Yankee delivered nearly a third of Vermont’s electricit­y.

The property tax revenue that flowed from Vermont Yankee financed one of the finest elementary schools in the state, including a gym to rival any high school. The police department’s cruiser was too old? Not a problem. Buy a new one.

No one talked about cutting budgets. “That wasn’t the mentality in this town because we always had so much money,” O’Donnell said. “It was like it doesn’t matter that there’s only 30,000 miles on this car, the capital plan says the new car is ready, so let’s go get the new car.”

Around 2012, rumors began to spread that Vermont Yankee might shut down. Years of litigation with the state of Vermont, which called for the plant’s shutdown, had taken its toll. Beyond that, low prices for natural gas, which dictate prices in the energy market, made it harder to keep the plant open, according to Mike Twomey, the vice president for external affairs for Entergy.

“I think a lot of the folks in Vernon felt like this was not an unexpected outcome, but this was a very disappoint­ing outcome,” Twomey said.

The plant’s workforce of 620 retired, found jobs with Entergy plants in other states or moved on. About 50 workers were retained to work on the decommissi­oning.

Houses went up for sale. The economy lost the cash that Vermont Yankee employees, who had an average salary of $105,000, spent in Vernon and neighborin­g towns. Vernon lost coaches for its youth sports teams, volunteers for the Boys and Girls club and nuclear engineers who used to walk across the street to Vernon Elementary School to help out with math homework.

NO GHOST TOWN

Vernon needed to find a way to cut half of its $2 million budget. Town meetings that once attracted a few dozen residents grew to more than 300. At town hall-style meetings that are a hallmark of government in Vermont, residents offered up suggestion­s for cutting budgets.

One led the town to contract with the Windham County Sheriff ’s Department to take over the town’s police duties. “We have to keep Vernon a town that people want to live in,” O’Donnell said. “We can’t turn it into a ghost town.”

In November, Entergy announced that it had agreed to sell Vermont Yankee to NorthStar Group Services, a New Yorkbased industrial demolition company, which includes in its portfolio the implosion of the Riviera hotel and casino on the Las Vegas Strip in 2016.

NorthStar has partnered with AREVA Nuclear Materials, which boasts 30 years’ experience decommissi­oning and dismantlin­g nuclear reactors. The company said it can cut decades off Entergy’s plan to finish the decommissi­oning by 2075. If allowed to take over the property as planned next year, the company said it could finish the dismantlin­g of the reactors and other buildings by 2030.

Critics of the NorthStar proposal urged caution. Deb Katz, the executive director of the Massachuse­tts-based Citizens Awareness Network, is not convinced NorthStar will have enough money to complete the decommissi­oning of Vermont Yankee and fears communitie­s such as Vernon are being “seduced” by the promise of a quick cleanup.

“The colossal failure of nuclear power is really seen in the issues of decommissi­oning and cleanup,” said Katz, whose anti-nuclear group participat­ed in protests at Vermont Yankee. “If they run out of money, then they’re not going to get it done quicker.”

NorthStar’s plan does not factor in the removal of hundreds of spent fuel assemblies that will remain at Vermont Yankee for the foreseeabl­e future.

By 2018, Entergy expects to transfer nearly 4,000 spent nuclear fuel assemblies to 58 dry cask canisters on two massive concrete pads on the Vermont Yankee property. The company will pay for a security force to protect the fuel assemblies for as long as they remain there.

There’s no telling when or whether they’ll find a permanent home.

In June, Energy Secretary Rick Perry expressed support for permanentl­y storing the nation’s spent nuclear fuel at Yucca Mountain, north of Las Vegas. The plan stalled during the Obama administra­tion and has encountere­d deep opposition in Nevada.

At a House hearing June 20, Perry said the Trump administra­tion budgeted $110 million to restart the licensing process for Yucca Mountain and $10 million to develop interim storage facilities that would take in spent nuclear fuel and high-level nuclear waste removed from 120 sites in 39 states.

Officials in towns living with spent nuclear fuel are losing patience. They back a bill that would force the Department of Energy to compensate communitie­s that have become “de facto nuclear storage facilities.”

The Stranded Nuclear Waste Accountabi­lity Act would provide nearly $100 million in payments to communitie­s storing nuclear waste until a new national facility is opened. The act was introduced last year but did not come up for a vote. The bill’s sponsors said there are 13 communitie­s across the country storing spent nuclear fuel.

Communitie­s would be compensate­d by a rate of $15 per kilogram of spent nuclear fuel. Zion’s compensati­on is about $15.2 million, and Vernon would qualify for more than $10 million, according to the bill.

O’Donnell hopes help comes soon, so Vernon can get to work on finding new uses for the Vermont Yankee property on the banks of the picturesqu­e Connecticu­t River.

“It is a gold mine piece of property, and every nuclear plant sits on a gold mine piece of property,” O’Donnell said. “We have the railbed, we have the river, we have the switch yard that connects to the whole southern loop right there on that property. So we can do something else, and it’s up to us to control our destiny not anybody else.”

“We’re used to doing what we need to do for ourselves. It’s what Vermonters are, and it’s what we’ve always been.” Patty O’Donnell, chairwoman of the Vernon, Vt., Select Board

 ?? MARK VERGARI, THE JOURNAL NEWS, VIA USA TODAY NETWORK ?? The Vermont Yankee plant on the banks of the Connecticu­t River was at the forefront of nuclear power prosperity, but in 2013, Entergy announced that it would close its reactor.
MARK VERGARI, THE JOURNAL NEWS, VIA USA TODAY NETWORK The Vermont Yankee plant on the banks of the Connecticu­t River was at the forefront of nuclear power prosperity, but in 2013, Entergy announced that it would close its reactor.
 ?? FRANK BECERRA JR., THE JOURNAL NEWS ?? The two active plants at the Indian Point nuclear power complex in Buchanan, N.Y., are scheduled to shut down in 2020 and 2021. Indian Point has been a primary source of electricit­y for New York City and Westcheste­r County for decades.
FRANK BECERRA JR., THE JOURNAL NEWS The two active plants at the Indian Point nuclear power complex in Buchanan, N.Y., are scheduled to shut down in 2020 and 2021. Indian Point has been a primary source of electricit­y for New York City and Westcheste­r County for decades.
 ?? MARK VERGARI, THE JOURNAL NEWS ?? Patty O’Donnell, chairwoman of the Select Board of Vernon, Vt., says the town couldn’t wait for someone else, some “white knight” to ride along and solve its problems.
MARK VERGARI, THE JOURNAL NEWS Patty O’Donnell, chairwoman of the Select Board of Vernon, Vt., says the town couldn’t wait for someone else, some “white knight” to ride along and solve its problems.

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