Dive Summary:
On Tuesday, Entergy announced it plans to close and decommission its Vermont Yankee nuclear power plant in Vernon, Vermont, according a press release.
Entergy said its decision to shut down the plant was based on "a number of financial factors," including:
- A natural gas market that has undergone a transformational shift in supply due to the impacts of shale gas, resulting in sustained low natural gas prices and wholesale energy prices.
- A high cost structure for this single unit plant. Since 2002, the company has invested more than $400 million in the safe and reliable operation of the facility. In addition, the financial impact of cumulative regulation is especially challenging to a small plant in these market conditions.
- Wholesale market design flaws that continue to result in artificially low energy and capacity prices in the region, and do not provide adequate compensation to merchant nuclear plants for the fuel diversity benefits they provide.
Entergy said the plant will "cease power production after its current fuel cycle and move to safe shutdown in the fourth quarter of 2014."
