Exelon President and COO Chris Crane has announced that the company will operate the Oyster Creek Generating Station in New Jersey until 2019, after which the plant will retire.
“The plant faces a unique set of economic conditions and changing environmental regulations that make ending operations in 2019 the best option for the company, employees and shareholders,” Crane said.
The decision is based on the cumulative effect of negative economic factors which has caused Oyster Creek’s value to decline. These factors include low market prices and demand, and the plant’s need for continuing large capital expenditures. Also, potential additional environmental compliance costs based on evolving water cooling regulatory requirements – at both the federal and state government levels – created significant regulatory and economic uncertainty. Due to Exelon’s decision to retire the plant early, the New Jersey Department of Environmental Protection (NJDEP) will not require the company to install cooling towers at Oyster Creek.
Following a formal life extension application submitted in 2005, and granted in 2009, the plant is federally licensed to operate until 2029.
Oyster Creek employs nearly 700 workers and began commercial operations in 1969. It is the oldest operating commercial nuclear power station in the USA.
Exelon reaffirmed its commitment to running the plant safely and reliably for the remainder of its operational life
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