The Manhattan Institute on Tuesday released a study on the statewide impacts from the potential loss of Indian Point, contributing to the mound of evidence in support of the plant’s continued operation. “The Economic Impacts of Closing and Replacing Indian Point Energy Center,” by Jonathan Lesser, M.A. and Ph.D, president of Continental Economics, warns of the devastating, widespread effects on New York State from the loss of Indian Point and its 2069 megawatts of baseload power.
The study’s key findings include:
- Closing Indian Point would increase annual electric costs in New York State by $1.5 billion to $2.2 billion between 2016 and 2030.
- Between 26,000 and 40,000 jobs would be lost annually as a result of Indian Point’s closure.
- All replacement scenarios for Indian Point result in electric rate increases for residential, commercial, industrial customers. For example, the MTA will see its electricity costs rise $1.26 to $1.86 million per year.
- The total net economic impact resulting from the loss of Indian Point would be $1.8 billion to $2.7 billion per year.
The loss of Indian Point would cause the New York Independent System Operator to violate its own standards for reliability and lead to rolling blackouts.
The study also considers several potential alternatives for replacing the power from Indian Point, including natural gas, renewables, and the Champlain Hudson Power Express transmission line. It concludes that all of the possible options are limited and costly and face major siting and infrastructure issues, as well as likely legal opposition from various constituencies.
Lesser notes, “When businesses and consumers pay more for electricity, they have less money to spend on other goods and services and investments that increase economic output.” He concludes, "Closing Indian Point is going act like a big tax on New York ratepayers, consumers, and businesses. Imposing higher costs on consumers and businesses is never a recipe for economic growth and job creation."
Given the state’s fragile economic condition, the last thing we need is to lose Indian Point.