|
Study Says Closing A-Plant Would
Raise Energy Costs
WINNIE HU
The New York Times
4/30/2002
WHITE PLAINS, April 29 -- An economic study of the Indian
Point nuclear power plant released today concludes that shutting
down the plant would increase the likelihood of rolling blackouts
and cost consumers an estimated $3.4 billion over the next
four years to replace that lost electricity through other
sources.
The study was commissioned by the plant's owner, the Entergy
Corporation, and completed jointly over the past three months
by two independent research groups, National Economic Research
Associates and General Electric Power Systems Energy Consulting.
Two economists who helped prepare the study, accompanied by
Entergy officials, presented their findings this afternoon
to a committee of the Westchester County Board of Legislators.
It is the first time that Entergy has released a study about
Indian Point's economic impact since opposition to the plant
began spreading after Sept. 11. Spurred largely by safety
concerns, many state and local politicians, environmental
groups and concerned residents have called in recent months
for the closing of Indian Point, which is about 40 miles north
of Midtown Manhattan.
''It's fine to have discussions about closing down Indian
Point,'' said Laurence P. Gottlieb, a spokesman for Entergy,
who attended today's committee meeting. ''But when you get
to the point where you've shown it's safe and secure, then
you need to go beyond that to the economics of it. You need
real data to show there is not the infrastructure to bring
that power in at the same cost that you're producing it here
at Indian Point.''
The study said that shutting down Indian Point's two working
reactors -- which can produce up to 2,000 megawatts of electricity
at any one time, or enough power for about two million homes
-- would immediately lower the electricity reserves in New
York State to 8.4 percent from 14.5 percent. In New York,
utilities typically try to maintain a reserve of 18 percent.
In addition, the study said, replacing the nuclear reactors
with natural gas or alternate sources would result in higher
costs to provide the same amount of electricity. The study
estimated an additional $3.4 billion in consumer expenditures
by 2005 for the electricity alone, while Entergy officials
said that building enough transmission lines to carry that
electricity from other areas could cost hundreds of millions
more.
But Michael B. Kaplowitz, the chairman of the legislative
committee, said he questioned some of the study's basic assumptions.
For instance, he said, the study did not take into account
all the natural gas plants in development, or that there was
simply less demand for electricity because of the recession
and the destruction of the trade center.
''I think it was a good faith effort to get to the economic
question; I don't find as much good faith with Entergy,''
Mr. Kaplowitz said. ''They did not address the jobs -- which
is a major concern -- what they'd do with the site, and the
tax ramifications.''
Mr. Gottlieb said that Entergy had decided to focus on the
energy impact of closing Indian Point because Mr. Kaplowitz
and others had raised questions about it. He said that Entergy
officials had already addressed those other issues, estimating
that as many as 2,000 jobs would be lost, as well as $34 million
in state, county and local taxes.
BACK TO TOP
|
