Could Federal Court Decision Impact Oyster Creek's Closure?

A federal judge made a decision that some worry may potentially affect the closing date of Oyster Creek Generating Station.

A U.S. district judge in Brattelboro, Vt. ruled Thursday that the Vermont Yankee nuclear plant could remain open beyond it’s scheduled shutdown date this year, the Washington Post reported. The state had originally ruled against Vermont Yankee’s federal operating license, which gives the plant 20 more years to operate.

Entergy, the operator of the plant, argued that the state acted on concerns over plant safety, which is the Nuclear Regulator Commission’s jurisdiction, the Washington Post reported. The judge ruled in Entergy’s favor.

The state of New Jersey reached an agreement with Exelon Corporation, the owner and operator of Oyster Creek, to shutdown the plant by Dec. 19, 2019, 10 years before its federal operating license expires.

The Sierra Club and other local advocates are concerned that the plant will not actually shut down in 2019, Director Jeff Tittel told Patch in December.

“If Exelon wants to keep the plant open past that date, the DEP would have a hard time stopping them,” Tittel said. “I’m not sure that this plant will close in eight years.”

The decision to shut down Oyster Creek early was made in

"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," said Chris Crane, president and chief operating officer of Exelon Corp, the plant's owner.

According to Exelon, the decision to shutter the plant 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, a statement from the company said. In addition to market conditions, the state Department of Environmental Protection was poised to to recirculate cooling water instead of drawing more than a billion gallons of water from Barnegat Bay each day. The project would run up substantial costs and to design, permit and construct a system would take at least seven years.

Due to Exelon's decision to retire the plant early, the DEP will not require the company to install cooling towers.

The closure of Oyster Creek was also a part of to restore the Barnegat Bay.

Oyster Creek employs nearly 700 workers, provides enough around-the-clock electricity for 600,000 New Jersey homes and began commercial operations in 1969. The plant is one of the largest employers in Ocean County, and annually provides more than $70 million in wages, property taxes and purchases of goods and services from New Jersey businesses.

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