Indian Point Energy Center generates more than 2,100 megawatts of electricity, or 18% to 38% of the electric power used in the downstate New York region, depending on time of year and load on the grid. Indian Point provides enough power to light million of homes, thousands of businesses, and hundreds of critical transportation, health and municipal systems.
It has been estimated that replacing the 2,000 megawatts would cost more than $1 billion per year in electricity costs, and would lead to electricity shortages, price spikes of as much as 40%, as well as rolling blackouts which we know would occur. We know this because there is a minimum threshold of 18% directly tied to the reliability of New York State’s electrical grid. Closing Indian Point would lower that threshold to 11%. Experts have placed a $3 billion price tag on another blackout for businesses.
Nuclear energy is a price-stable energy source. Because it is produced within the consuming region, and it is not affected by international pressures, it does not fluctuate like natural gas prices or other fossil fuels.
The Comptroller General of the United States concluded that shutting down Indian Point would cost a total of $27 billion over a 15-year period.
Locally, Indian Point Energy Center employs approximately 1,100 highly skilled, highly trained workers. The annual economic impact of that payroll combines with local purchases is $356 million.
In 2006, Entergy paid $50 million in state and local taxes, including sales tax, payroll taxes, property taxes and state/local income taxes. This amount does not include the significant personal and property taxes paid by individual Entergy employees. Closing the site would mean municipalities, schools and services that depend upon the tax revenue would see a dramatic decrease in their tax collections that would have to be compensated for in other ways.
The company also provides more than $5 million annually into emergency planning budgets which prepares for a number of potential emergency situations well beyond – and far more likely than – an event at Indian Point.
Most recently, the Westchester Business Alliance (WBA) commissioned Energy Strategies, Inc. to conduct a study on the region’s energy supply out of concerns over rising energy costs and the potential supply shortage that is projected in the coming years. Read more about the WBA and the energy report.
The Nuclear Energy Institute also conducted a full study in 2005 on the economic impact of Indian Point.