Home Economic Development Holtec International to buy Indian Point post-shutdown for decommissioning

Holtec International to buy Indian Point post-shutdown for decommissioning

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Holtec International, a privately held energy technology company in Camden, New Jersey, has agreed to buy Indian Point Units, 1, 2 and 3 for decommissioning from Entergy Corp.

The sale, which will take effect after Unit 3 has been shut down in 2021 and permanently defueled, includes the transfer of the licenses, spent fuel, decommissioning liabilities and Nuclear Decommissioning Trusts (NDT) for the three units.

Entergy spokesman Jerry Nappi said, “We are not disclosing the purchase price, as it is business-sensitive info at this time.”

indian point Holtec international
Indian Point Energy Center in Buchanan. Photo by Bob Rozycki.

In a press release, the company stated, “As consideration for its transfer to Holtec of its interest in Indian Point Energy Center, Entergy will receive nominal cash consideration.”

The transaction is expected to result in a “noncash loss based on the difference between Entergy’s adjusted net investment in the subsidiaries at closing and the sale price net of any agreed adjustments.”

The terms of the transaction include “limitations on withdrawals from the NDTs to fund decommissioning activities and controls on how Entergy manages the investment of NDT assets between signing and closing.” The company added that the agreement does not require a minimum level of funding in the NDTs as a condition to closing.

As of Dec. 31, 2018, Entergy’s adjusted net investment in the companies was $265 million. The company pegged ultimate loss variables as asset retirement obligations, financial results from plant operations and any unutilized deferred tax balances.

“The sale of Indian Point to Holtec is expected to result in the completion of decommissioning decades sooner than if the site were to remain under Entergy’s ownership,” said Entergy Chairman and Chief Executive Officer Leo Denault. “With its deep experience and technological innovations, Holtec’s ability to decommission Indian Point will benefit stakeholders in the surrounding community.”

Dismantling of Indian Point would be handled by Comprehensive Decommissioning International LLC, a jointly owned company of Holtec International and SNC-Lavalin.

The company said a specific timetable for dismantling will be developed in connection with Holtec’s preparation of its Post-Shutdown Decommissioning Activities Report (PSDAR) and Site-Specific Decommissioning Cost Estimate. Holtec will submit those reports to the U.S. Nuclear Regulatory Commission in the fourth quarter of this year. The transaction closing is targeted for the third quarter of 2021.

“Holtec will hire Entergy’s employees at Indian Point who are employed at the site at the time of the transaction and identified by Entergy as an employee whose services are required for that phase of decommissioning,” said Kris Singh, president and CEO of Holtec Internationa. “Holtec looks forward to engaging with site employees, the local community, and other stakeholders over the coming months and years as we discuss our vision for the decommissioning of Indian Point.”

“Headcount at Indian Point will not be reduced until after Unit 3 is shut down,” Nappi said. There are currently nearly 1,000 Entergy employees at Indian Point.

“It is premature to say with certainty to what degree headcount will be reduced after Unit 3 shuts down, but at previously closed nuclear power plants employee headcount is generally reduced by about 50% or more post-shutdown,” Nappi said.

Holtec said in a statement that it intends to minimize “any incidental disruption of the land, water, and air at and around” the Indian Point site in Buchanan.

Indian Point Unit 2 and Unit 3 are scheduled to shut down by April 30, 2020 and April 30, 2021, as part of an agreement with New York State. Indian Point Unit 1 was shut down in 1974.

Marsha Gordon, president and CEO of the Business Council of Westchester said in statement, “We are encouraged that Holtec has pledged to retain some of the local workforce and we urge state agencies to expedite the approval process. We look forward to welcoming Holtec to the Westchester business community and to meeting with them in the near future to discuss their plans.”

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