U.S. Extends Application Deadline for Nuclear Power Rescue Program, Reports Reuters

WASHINGTON (Reuters) – On Wednesday, the U.S. Department of Energy announced an extension of the application deadline by 47 days, now set for July 5, for nuclear power plants seeking federal funding to continue operations.

The initial phase of this program is focused on preserving two nuclear facilities located in California and Michigan. The Biden administration’s goal is to maintain the operation of nuclear plants, which supply over half of the nation’s carbon-free electricity.

This decision by the Department of Energy followed a request from two industry groups, the Edison Electric Institute and the Nuclear Energy Institute. They reached out to Energy Secretary Jennifer Granholm, advocating for the extension to benefit their member facilities.

Kathryn Huff, the DOE’s assistant secretary for nuclear energy, stated, “We received a request to extend the application period, which could keep at-risk reactors online, delivering much-needed clean energy to the grid.”

The initiative, known as the Civilian Nuclear Credit (CNC) program, prioritizes owners of nuclear reactors that are slated for retirement. The first part of the $6 billion in funding allocated for this program is derived from last year’s bipartisan infrastructure legislation.

The Palisades nuclear plant in Michigan, operated by Entergy Corp, may qualify for this funding and is scheduled for shutdown on May 31. Despite this impending closure, Entergy’s Chief Executive Leo Denault indicated in an earnings call that significant technical and commercial challenges make reversing the decision difficult. Nevertheless, he expressed a willingness to collaborate with any qualified party interested in acquiring the plant and securing federal funding.

In California, the Diablo Canyon facility, owned by PG&E Corp, is set to close completely in 2025. A spokesperson for the utility remarked on Tuesday that a decision regarding the application for federal funds had not yet been made.

Environmental Working Group President Ken Cook criticized the CNC program as a misallocation of limited resources, arguing it hinders progress toward renewable energy in the country and California specifically.