Officials, advocates question Holtec’s Indian Point restructuring plan
Holtec, which owns Indian Point and is overseeing the site's decommissioning, is seeking approval from the New York State Public Service Commission to transfer certain decommissioning assets and liabilities to an affiliate known as DEAMCO while continuing to provide decommissioning services.
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Holtec International's proposed corporate restructuring tied to the decommissioning of the former Indian Point nuclear power plant is drawing scrutiny from local officials and environmental advocates over concerns about accountability and financial protections.
Holtec, which owns Indian Point and is overseeing the site's decommissioning, is seeking approval from the New York State Public Service Commission to transfer certain decommissioning assets and liabilities to an affiliate known as DEAMCO while continuing to provide decommissioning services.
The company says the reorganization will not affect Westchester residents, taxpayers, ratepayers or its obligations to complete the cleanup.
However, critics argue stronger safeguards are needed.
"It would limit their liability when it comes to issues of decommissioning and the funds running out. And they have provided no evidence of the new affiliate, who's taking on ownership of Indian Point and the decommissioning trust funds and the responsibilities associated with that. They have not shown that that entity has any assets of its own that could make up the shortfall," said Larissa Liebmann, a staff attorney with Riverkeeper.
Westchester County Executive Ken Jenkins has urged the Public Service Commission to reject the proposal unless additional protections are put in place for taxpayers and the decommissioning process.
"I'd like to have more information, of course, but, like I said, the bottom line is that I think we're all on the same page that we have the funds there to decommission. I don't see the village of Buchanan having to put any money up. My understanding is that the trust funds are sufficient to finish the decommissioning. We just want it to be safe and done properly," said Buchanan Mayor Theresa Knickerbocker.
Holtec maintains the restructuring would add independent oversight for how decommissioning trust funds are used and would not change who is responsible for completing the cleanup.
The next Indian Point Decommissioning Oversight Board meeting is scheduled for Dec. 10.
Statement from Holtec:
"There will not be any impacts to Westchester residents, taxpayers and rate payers.
The original agreement for decommissioning IPEC, to which Westchester County was a signatory, still remains. They have a negotiated Payment-in-Lieu-of-Taxes (Pilot) agreement with us, like Buchanan, Hendrick Hudson, and Cortlandt, so nothing changes on the tax front.
Ratepayer money does not support decommissioning. The trust funds that transferred from Entergy to Holtec are the source of funds to decommission. Those funds were sold to Entergy by NYPA and ConEd, respectively, to remove their liability to decommission, as well as the ratepayers.
Nothing is changing with the trusts in terms of the trustee or restrictions in how trust money is invested. We're just substituting an upstream owner of HIP2, LLC and HIP3, LLC from NAMCO to DEAMCO and is also hiring an independent fiduciary manager, which should increase oversight into how the trust money is used.
The NRC has reviewed and blessed the reorganization."
Statement from Westchester County Executive Ken Jenkins's Office:
"Westchester County Executive Ken Jenkins is calling on the New York State Public Service Commission (PSC) to reject Holtec’s proposed corporate restructuring unless there are clear, enforceable guarantees that the changes will not jeopardize the decommissioning of the Indian Point Energy Center or place additional financial burdens on County taxpayers and utility ratepayers.
In a letter to the PSC, Jenkins raised serious concerns about whether the proposed restructuring could weaken corporate accountability, diminish existing financial protections or leave the public responsible for potential funding shortfalls."
Westchester County Executive Ken Jenkins said: “Let me be absolutely clear: The people of Westchester County will not be left holding the bill for the decommissioning of Indian Point. This is not an old movie theater or an abandoned supermarket. This is a former nuclear power facility surrounded by homes, schools and neighborhoods. Holtec has a responsibility to complete this work safely, thoroughly and with the financial resources necessary to get the job done. That responsibility does not disappear simply because a corporation decides to reorganize.”
The county executive's letter emphasizes that the safe decommissioning of Indian Point must remain the priority, regardless of changes to Holtec's corporate ownership or structure.
