Entergy announced yesterday that it plans to close Palisades Nuclear Power Plant in southwestern Michigan on October 1st 2018. They said it will save Consumers Energy customers as much as $172 million from 2018 to 2022 and affect about 600 employees.
Leo Denault, Entergy’s chairman and chief executive officer said, “We determined that a shutdown in 2018 is prudent when comparing the transaction to the business risks of continued operation.”
Entergy said that since it purchased Palisades from Consumers Energy in 2007 “market conditions have changed substantially, and more economic alternatives are now available to provide reliable power to the region.”
Consumers Energy had originally signed a contract in 2007 to purchase nearly all of the power from the plant through April 2022. Regulators still need to approve the ending of this agreement.
Entergy and Consumers Energy said they plan to provide a total of $10 million of economic development funding for the southwest Michigan region over several years during the transition.
Palisades is licensed by the NRC to operate through March 24, 2031.