Indian Point's Economic and Environmental Value to New York Far Outweigh Political Considerations

Release date: December 3, 2007

Contact Information: Jim Steets
(914) 272-3545 office
(914) 671-0457 cell
jsteets@entergy.com

White Plains, N.Y. — Warning that a forced shutdown of the Indian Point Energy Center would severely impact the economic and environmental health of the Lower Hudson Valley region and New York City, the Entergy Corporation today called on all responsible local elected and appointed officials to rise above political pressure and carefully consider the facts.

"Fear-based rhetoric can not alter the fact that, depending on seasonal demand, the 2,000 megawatts produced by Indian Point supplies between 18 percent and 38 percent of our region's electricity needs with zero greenhouse gas emissions that cause global warming," said Entergy.

Replacing Indian Point's emission free power would mean a greater reliance on fossil-fuel burning plants leading to a 20 percent rise in carbon dioxide emissions, a 19 percent jump in nitrous oxide emissions combined with an 11 percent hike in sulfur dioxide emissions.

Since purchasing the two nuclear generators in Buchanan, N.Y., more than six years ago, Entergy has invested hundreds of millions of dollars in Indian Point as part of its ongoing effort to improve and maintain the plant's operating systems and to ensure that safety and security levels are among the highest in the nation.

"That level of investment and commitment has transformed Indian Point into one of the most reliable and best performing plants in the region, with a capacity factor of 93 percent over the last three years," Entergy said. "When you consider that the New York City subways and the Metropolitan Transit Authority's Metro North trains are among just a few of key governmental facilities that depend on power from Indian Point, the importance of a reliable, lower cost supply of electricity becomes clear."

The National Academy of Sciences, after a year-long study commissioned by the U.S. Congress, concluded that a forced shutdown of Indian Point would mean higher electricity costs, increased air pollution and a heightened risk of major power outages. Other findings of the NAS study included the following:

• "Even with Indian Point's units operational, New York State will require system reinforcements... as soon as 2008 in order to meet its projected demand and maintain system reliability."
• "New generating capacity may not be available until reserves are dangerously low. Forestalling a crisis may require extraordinary efforts on the part of policy makers and regulators."
• "Electricity from new plants is almost certain to be more costly than that from Indian Point."
• "...maintaining a reliable supply of electricity for New York City and southeastern New York State is a primary objective for public policy and essential to the region's health and economic well-being."
• "If new generating capacity is not constructed in a timely manner, system reliability would be threatened."

Constraints on the state's transmission system — particularly the lines serving New York City — severely limit the amount of power that could be "imported" to replace Indian Point's 2,000 megawatts.

With Indian Point offline, the installed base-load supply of electricity in New York State would immediately fall to about 11 percent, well below the 18 percent level required by the New York Independent System Operator (NYISO) to maintain system reliability.

Higher electricity costs would have a negative impact on all segments of New York City's business and residential communities but hardest hit would be low income residents least able to bear the cost.

Nationally, the energy burden for low income households was 13.6 percent of their annual income, more than twice the average burden for all households, according to the latest U.S. Department of Health and Human Services data. In the New York metropolitan region, electric rates are twice the national average.

Without Indian Point, replacement units would be needed – most likely peaking units that produce high levels of pollution at a higher cost per kilowatt. Historically, a disproportionate number of new power plants have been constructed in low income neighborhoods to avoid the nimby, or "not-in-my-backyard," syndrome prevalent in more affluent areas.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations, and has approximately 14,500 employees. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy

Nuclear operates five reactors at four locations in Arkansas, Mississippi and Louisiana under regulatory jurisdictions and six reactors at four sites in Massachusetts, New York, Michigan, and Vermont. Entergy Nuclear also provides management services to the Cooper nuclear station in Nebraska and is the nation's largest provider of license renewal and decommissioning services to the nuclear power industry. Entergy also delivers electricity to 2.6 million utility customers in Arkansas, Louisiana, Mississippi and Texas.

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