03/23/2023 | News release | Distributed by Public on 03/23/2023 11:10
According to a new study conducted by the economics consulting firm Analysis Group, "Massachusetts utilities could save their customers $880 million to more than $2 billion by 2032 by entering into a long-term power purchase contract with the Seabrook Station nuclear plant." The study, Economic and Environmental Benefits to Massachusetts from the Operation of the Seabrook Nuclear Plant, also found that operation of the plant through 2032 is expected to contribute as much as $2.9 billion to the state's economy and reduce regional greenhouse gas emissions by 5 million tons per year.
The study was funded by NextEra Energy Resources, the principal owner and operator of the Seabrook facility, in Seabrook, N.H. (Minority owners include Massachusetts Municipal Wholesale Electric Company, Taunton Municipal Lighting Plant, and Hudson Light & Power Department.)Analysis Group's researchers pointedly stated that study's conclusions reflected their independent judgement alone.
Brief history: The operating license for Seabrook pressurized water reactor was first issued in 1986. Commercial operation began in 1990. In 2019, the Nuclear Regulatory Commission approved NextEra Energy's request to extend the operating license of the plant by 20 years, to 2050.
Two models: The researchers, led by Analysis Group vice president Joseph Cavicchi and associate Jonathan Franklin, based their findings on "commercially available power market and regional economic impact modeling software", which they used to produce two different estimates of electricity generation in Massachusetts from 2023 to 2032. One estimate included Seabrook's 1,250 MW capacity, and the other estimate excluded it. The researchers ran models for the two estimates to analyze economic and consumer impacts, greenhouse gas emissions, and fossil fuel consumption under different natural gas price forecasts.
Main conclusions: The key takeaways of the study findings follow:
Summary statement: Cavicchi said of the study findings, "Beyond the estimated savings to consumers, our study suggests that continued plant operation substantially reduces carbon dioxide emissions, helps keeps down Regional Greenhouse Gas Initiative emission allowance prices, and reduces Massachusetts' and New England's reliance on natural gas, especially during cold winter months. Moreover, Seabrook's operation is critical for the state to meet its clean energy standards in the coming years, and it plays a significant role in maintaining regional power system reliability."