Entergy takes a stand at Indian Point
Nuclear utility files an appeal of adverse action on its water permit by the State of New York
After taking it on the chin from environmental groups and a two rounds on the ropes from manifestly hostile agencies of the State of New York, Louisiana-based Energy (NYSE:ETR) got a second wind. The utility, which owns and operates the two reactors at Indian Point on the Hudson River 50 miles north of New York city, formally appealed the denial of a water quality permit it needs to get their licenses renewed by the NRC. The licenses for the two reactors at Indian Point expire in 2013 and 2015.
Separately, the State of New York Public Utility Commission staff rejected a planned spin-off of six reactors, including the two in New York. In response, Entergy cancelled its financial plans for the new merchant group. However, on the licensing issue the firm has taken a stand.
On April 2 the NY State Department of Environmental Conservation (DEC) denied an essential regulatory permit to Indian Point on the grounds that the cooling system water intake ports killed too many fish. Obtaining the water quality permit is a precondition for getting the 20-year licenses renewed by the NRC for the two reactors.
On April 30 Entergy appealed that decision. VP Fred Dacimo said in a press release:
“Today’s request for intervention to the administrative law judges reflects our strong belief that the DEC staff, in this instance, is mistaken in its conclusions.”
Billions for fish without a drop of common sense?
At the heart of the dispute is a requirement by DEC that Entergy modify its once through cooling system by building new cooling towers at a potential cost of between $1-3 billion. Entergy had responded that new “wedgewire” screens, installed at a less than 10% of the cost of the cooling towers, would be just as effective.
Entergy’s once through cooling system takes in 2.5 billion gallons of water a day, but it is not a consumptive use. Environmental groups have emphasized this number creating an impression it is water withdrawn from the river once and for all.
Entergy also said the new screens could be installed in two years. The cooling towers could take as long as 15 years to clear regulatory hurdles, get built and be put into service. The towers, which may need to be 300-600 feet high, would likely set off a storm of opposition from surrounding land owners as far away as upscale Croton-on-Hudson some distance south and around the bend of the river from Indian Point.
Dacimo said, “We need to show DEC that the technology [wire screens] will do what we say it will do.”
Entergy also claimed that the new screens would protect fish and fish larva and would not impact human health or the Hudson River shoreline.
The next steps in the process include a public hearing. Given the strong feelings of environmental groups, they are likely to turn out for the public hearing in force. However, Elise Zoli, an attorney for Entergy, told the Lower Hudson News in early April she feels the process with the administrative law judges is the best place to start.
“They are not a rubber stamp for DEC staff,” she said.
If administrative appeals fail, Entergy is likely to turn to state courts and, if necessary, the federal courts. An issue that may weigh in Entergy’s favor is that the federal courts have ruled that cost is a consideration when implementing environmental laws even when states have primacy for permits and enforcement.
Is New York copying New Jersey?
The cooling towers issue appears to have emerged as a “copy cat” action instigated in part by the political ambitions of NY State Attorney Andrew Cuomo (right). It has all the trade-marks of Chubby Checker following in the footsteps of Fats Domino. Cuomo's actions follow those of the outgoing Democratic governor in New Jersey, who sought to impose cooling tower requirements on the Oyster Creek reactor owned and operated by Exelon Corp. Action on the water permit for Oyster Creek in New Jersey has been put on the political back burner due to a severe budget crisis that has consumed the time and attention of the new Republican governor.
In New York DEC claimed, based on representations from environmental groups like Riverkeeper, that Entergy’s cooling system water intakes were responsible for the decline of shortnose sturgeon. However, Entergy responded that the endanger sturgeon fish population has increased by 400% in the past decade.
Environmental groups have made it clear the attack on the cooling system, while focused on fish, is intended to impose regulatory requirements on the plant that are so onerously expensive that Entergy would shut down the two reactors rather than build the cooling towers. This is the same tactic undertaken by environmental groups against Oyster Creek in New Jersey.
However, environmental groups, and Mr. Cuomo, who is depending on the “green vote” as part of his campaign to become governor of New York, have not counted the increased cost of replacement fossil fuel powered electricity if the 2 GWe of nuclear energy is shut down.
The cost of electricity may not matter much to the upscale residents of the Hudson River valley. Given the amount of electricity supplied to the City of New York, there’s a lot more at stake than some fish and the merged ambitions of green groups and Mr. Cuom’s election chances.
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