COVERT, MI (WHTC) – An aging nuclear power plant along the Lake Michigan shoreline will close.
Officials of Entergy Corporation, operators of the Palisades Power Plant near Covert, and Consumers Energy, the primary customer of the electricity that the 45-year-old facility generates, have come to terms on an early termination of a power purchase agreement. Pending regulatory approval, the plant will cease operations completely and permanently on October 1st of 2018.
In a statement, Entergy Chairman and CEO Leo Denault said that a shutdown three and a half years ahead of the end of the agreement was “prudent when comparing the transaction to the business risks of continued operation.”
To help ease the impact of about 600 employees who stand to lose their jobs as a result of the shutdown, as well as to the economy of the area, Entergy and the Consumers Energy Foundation will provide a total of 10 million dollars over several years in economic development funding through consulting with the Council of Michigan Foundations. Consumers Energy will also work with Entergy in placing up to 180 skilled employees into the utility’s workforce.
In reacting to the decision, Governor Snyder is directing several state agencies to start work immediately on delivering “necessary resources” for the employees and communities affected, while state House Energy Policy Committee Chairman Aric Nesbitt (R-Lawton) called the move a “punch to the stomach” and “puts Michigan’s energy future at greater risk” in asking for a reconsideration of the closing.
Opponents such as Beyond Nuclear have called for Palisades’ closing for some time, claiming that numerous incidents in recent years that have halted operations are indications that the plant is not safe.
