Entergy Corporation, an integrated energy company engaged primarily in electric power production and retail distribution operations, will be closing down its Pilgrim Nuclear Power Station in Plymouth, Massachusetts no later than June 1, 2019, according to a press release issued by Entergy.
The closing down of the nuclear power station is due to poor market conditions, increased operational costs, and reduced revenues.
Leo Denault, the chairman and CEO of Entergy, said in the press release that it was a difficult decision to shut down the nuclear power station due to the effect on the employees and the community.
"Our people at Pilgrim are dedicated and skilled, a wonderful blend of young professionals and seasoned, experienced veterans, who for decades have been generating clean power and contributing millions of dollars of economic activity to the region," he said. "But market conditions and increased costs led us to reluctantly conclude that we had no option other than to shut down the plant."
The Boston Globe added that the decision to shut down the nuclear power station comes a month after the federal Nuclear Regulatory Commission (NRC) downgrades the safety rating of the plant.
The Pilgrim Nuclear Power Station and two more reactors in Arkansas are now considered as the least safe in the U.S.
The Boston Globe also reported that the repairs needed to improve the nuclear station would have probably cost Entergy tens of millions of dollars.
The repair cost would add to the already rising operational costs and reduced revenue that Pilgrim is facing.
Entergy said in the press release that they expect that the shutdown will have a neutral to positive effect on the company's cash flow through 2020.
This is compared to the operational cost and possible repair cost Pilgrim will need following the NRC's downgrades.
The Boston Globe also mentioned that the shutdown of Pilgrim will also significantly affect the town of Plymouth and the region.
The nuclear station employs about 600 people and provides South Shore $10 million a year and other financial benefits.
Entergy adds in the press release that Pilgrim will transition to decommissioning after the shutdown.
The nuclear station generates 680 megawatts of nearly carbon-free electricity, which is enough to power 60,000 homes.
