On December 8, 2016, Entergy Nuclear and Consumers Energy announced a plan to terminate their 15-year power purchase agreement. Both companies agreed that the PPA negotiated in 2007, when Consumers sold Palisades to Entergy, should end in 2018 instead of 2022. Since Consumers is the plant’s only customer, this agreement is essentially a Palisades shutdown plan.
Palisades Shutdown Plan Hearing, by Bruce Brown
The closure, scheduled for October 2018, would come 13 years before expiration of the 20-year license renewal that the Nuclear Regulatory Commission granted Palisades in 2011.
But first, the Michigan Public Service Commission must decide whether to allow or to veto the Palisades shutdown plan. MPSC scheduled its first hearing in the matter for March 9 and told Consumers to publicize the hearing and invite people to attend and comment.
Shortly after Entergy and Consumers announced their Palisades shutdown plan, the Executive Committee of Sierra Club Southwest Michigan Group passed a Resolution supporting the plan. The resolution has been uploaded to MPSC’s online docket as a comment. Attorneys have filed petitions to participate in the case on behalf of six different clients. I’ve looked at the case’s documents online, and it appears that the issue at question is how Consumers will pay for the PPA buyout. (Disclaimer: I’m not fluent in legalese.)