White Plains CitizeNetReporter - Spano Calls for Taking Over Indian Point, Conversion to Gas.

WPCNR COUNTY CLARION-LEDGER. From James Benerofe and Westchester County Department of Communications (EDITED). November 13, 2002 UPDATED November 14, 2002:Jim Benerofe of SuburbanStreet.com, reporting from the County Executive's news conference at noon Wednesday, reports that Executive Spano is calling for the county to take over the Entergy Indian Point nuclear energy plant, and study converting it to natural gas. Benerofe also reports, the issue of removal of the spent fuel rods in storage at Indian Point, was not addressed. He also reports Jim Steets, spokesperson for Entergy, noted that Entergy could run just such a plant, but did not elaborate.

The Associated Press reporting later today quoted Mr. Spano as saying purchasing the plant would cost the county possibly $3 Billion, but that electricity savings might make it worth while. The AP story also noted Entergy, the present owner paid approximately $1 Billion to purchase the plant, and that their spokesman, Jim Steets, indicated Entergy might entertain an offer.

Earlier Wednesday, the Westchester County Department of Communications summarized the news conference:

“I have long said that I would like to see Indian Point closed,” said Spano. “These new studies provide a basis to go ahead and investigate buying or condemning Indian Point and building a natural gas plant on the site. But many, many questions still need to be answered. We are prepared to hire experts to analyze this further. I want the study completed within six months.’’

Spano released the results of two studies recently prepared at the request of the county’s Public Utility Agency: one that looked at the possibility of building, owning and operating a natural gas-fired generating plant; and a second that studied the feasibility of acquiring the electric distribution system within the county.

New Study Called for. NYC invited to Participate

The county will issue RFPs (requests for proposals) for the study, which is estimated to cost $500,000. Spano said he intends to ask Mayor Michael Bloomberg if New York City wants to participate.

Spano said the proposed study would address the following questions: • What would it cost to take over Indian Point, either by purchase or condemnation?

• What would it cost to replace the nuclear reactors with gas-burning generators with sufficient capacity?

• How could this best be accomplished? What partnerships, such as with the New York Power Authority (NYPA), would be needed?

• What would be the effect on the tax base of local municipalities and school districts?

• What would the effect be on energy rates for Westchester businesses and residents?

• Would county ratepayers further benefit if a county utility agency takes over some or all of Con Edison’s distribution system? Would it help the county qualify for cheap hydroelectric power and/or rid Westchester ratepayers of the burden of having to subsidize ratepayers in New York City?

"Masters of Our Own Fate"

“While there has been a lot of rhetoric about closing Indian Point, only Entergy or the Nuclear Regulatory Commission can make that decision,’’ said Spano. “However, if we buy the facility -- or, if needed condemn it -- and replace it, we don’t need the company or the NRC. We can be masters of our own fate.’’

He added, “Replacing Indian Point’s nuclear reactors will make us all feel safer. Now we need the specifics on how to do that.’’

The two preliminary energy reports released today were done by Sargent and Lundy of Chicago, a nationally recognized firm that is known for its consulting work on engineering, technical support and strategy for the electric power industry. The studies, titled the “Distribution Feasibility Study” and the “Power Plant Cost Study,” were recently completed.

They dealt broadly with the questions of whether alternate energy sources could be built in the county and whether a takeover of all or part of Con Edison’s distribution system could control or reduce electric rates paid by the public.

These reports were commissioned by the County of Westchester Public Utility Service Agency (COWPUSA), which was created in 1982, and gives the county the power to purchase, construct, lease, own or acquire a public utility to provide energy to county residents. While the agency was created to help provide cheaper energy for Westchester consumers, a natural progression could be the acquisition of Indian Point, Spano noted.

Old Idea

The idea of acquiring the old Con Edison energy system was first raised almost 30 years ago. At that time the rationale was to take over the generation and transfer of electricity to reduce outrageously high electric rates. A proposal to take over Con Edison’s distribution lines was narrowly defeated in a public referendum in the late 1970s. “Life has changed since Sept. 11. While we are still concerned about unfair energy costs, the focus now is on nuclear power plant safety in this age of terrorism,’’ Spano said.

Issues to be Considered.

The formal report Spano has ordered now must cover a range of financial and legal issues, including:

• The ability and effect of using general obligation or revenue bonds to finance the buyout or condemnations necessary to construct any needed county facilities;

• Identification of any and all regulatory agencies whose approvals would be necessary for the project;

• Identification of the actual facilities and properties that the county needs to acquire or develop and an estimate as to the costs of such acquisition and development;

• A plan for the management and operation of the proposed county facilities;

• The impact of closure of the existing nuclear plants upon the employees of those facilities and the feasibility of retaining existing employees to operate and maintain the contemplated county facilities;

• The impact of closure of the existing nuclear plants on the tax bases of local communities and school districts and steps that may be taken to avoid or mitigate loss of property tax revenue;

• The increased energy costs to local governments from the expiration of the Power Purchase Agreement between NYPA and Entergy in 2004 and the ability of using of county facilities to avoid or mitigate property tax increases resulting from these higher energy costs;

• A comparison of Con Ed rates with those of New York State Electric & Gas to review why NYSEG’s Westchester customers pay so much less than rates paid by Con Ed’s Westchester customers.


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