Steve Orr

@SOrr1

The struggling Ginna nuclear power plant, now subsisting on special surcharges paid by local electric customers, could gain its financial footing under a proposal now being considered by New York state regulators.

Under the Clean Energy Standard proposal, electric customers would wind up paying a small premium on their bills to support continued operation of the Ginna plant in Wayne County and at least two other nuclear reactors in Oswego County. Those payments would be used to cover revenue shortfalls caused by the nuclear plants' inability to compete with power generators burning low-cost natural gas.

The size of the premiums, and the means of collecting them, aren't determined yet.

The owner of the Ginna plant, one of the nation's oldest nuclear power generators, had threatened to close the plant due to poor financial performance before the temporary surcharges were imposed. The company that owns the FitzPatrick nuclear plant in Oswego County has done them one better, declaring it will permanently shutter that plant by next year.

But if those plants or other upstate New York nukes were to go out of business, state officials argue that New York could not meet federal greenhouse-gas emission targets or achieve Gov. Andrew Cuomo's renewable energy goals. Nuclear plants burn no fossil fuels and have no substantive greenhouse-gas emissions.

The four nuclear plants in upstate New York that are covered by the Cuomo administration proposal provide about 16 percent of the State's energy, according to a "white paper" detailing the proposal authored by the state Public Service Commission staff.

If those plants shut down, the electricity they've supplied likely would be replaced by power from plants burning natural gas or perhaps even coal. Both are sources of pollutants that contribute to global warming. "Their closure would have dramatic impacts on New York, in particular on the state's effort to lower greenhouse gas emissions," the PSC white paper said.

The Cuomo administration has portrayed subsidization of the upstate nuclear plants as a "bridge" that would allow the state to meet clean-air goals until enough renewable-energy sources come online to replace the nukes.

Cuomo last month directed the PSC to work toward adoption of rules implementing the proposal, and the commission itself released a written order Monday laying out the process it will follow to consider the proposal.

The commission is now accepting public comments on the white paper, and intends to hold public hearings around the state in coming months. The governor has asked for the commission to act on the proposal by June.

Exelon Corp., which owns the Ginna plant and a two-reactor facility in Oswego County, reacted with guarded optimism, saying on Tuesday the proposal as laid out in the PSC white paper "could provide a meaningful path to sustain these facilities, which are vital to achieving New York’s clean air objectives.

"The economics of the proposal will be a critical determiner of its success, and we look forward to working with the governor, the PSC and other stakeholders to learn more," the company statement said.

Opponents of nuclear energy, who have opposed the Ginna surcharges and have urged permanent closure of of the state's nuclear plants, denounced the proposal as reckless.

"Nuclear power reactors may not emit carbon dioxide or methane, but that doesn’t make them clean or safe," said a statement from the Alliance for a Green Economy, based in Syracuse. "Instead of ensuring better energy affordability and a clean environment for ... customers, the Public Service Commission is writing a blank check from electricity consumers to Exelon and Entergy corporations, owners of the aging upstate nuclear plants."

Entergy owns the FitzPatrick plant and two reactors at Indian Point in Westchester County. The proposal before the PSC would apply to FitzPatrick, though it's not clear if Entergy has changed its plans to close that plant. The PSC proposal is not being extended to Indian Point. The Cuomo administration, citing safety concerns, wants that plant closed.

At present, Ginna is the only nuclear plant in New York receiving bail-out money from consumers. That process began in 2014 when Exelon said it was considering closing the plant, located on the Lake Ontario shoreline in the town of Ontario.

But it was later shown that Rochester Gas and Electric Corp.'s electric distribution system was configured in such a way that it couldn't reliably get power to all of its customers if Ginna was shut down. That finding gave Exelon an opportunity to ask the PSC for customer surcharges to keep Ginna in the black for the time being.

The PSC last year approved "temporary" surcharges that amount to about $1.85 a month for an average RG&E residential consumer. They'll remain in place until slightly higher surcharges that would last about two years receive final PSC approval. They'd presumably be replaced by the Clean Energy Standard premium charges if the latter are approved.

SORR@Gannett.com

RG&E, Ginna owner reach new deal on customer fees