U.S. Extends Deadline For Nuclear Power Rescue Program Applications

The U.S. Department of Energy announced on Wednesday that the deadline for nuclear power reactors to apply for federal assistance to keep them operational has been extended by 47 days, until July 5.

The program's initial phase aims to preserve two factories in California and Michigan. More than half of the country's carbon-free electricity is generated by the nuclear industry, which is why the Biden administration wishes to keep nuclear plants operational.

Two industry trade groups, Edison Electric Institute and Nuclear Energy Institute, requested the extension on behalf of their members in a letter to Energy Secretary Jennifer Granholm two days before the DOE's action.

Kathryn Huff, assistant secretary for nuclear energy at the Department of Energy, stated, "We received a request to extend the application period, which could keep at-risk reactors running and provide much-needed clean power to the grid."

Under the concept, known as the Civilian Nuclear Credit (CNC) program, owners of nuclear reactors slated for retirement would receive preference for the initial $6 billion in funding. The money for the CNC is derived from the infrastructure statute enacted last year.

The Michigan Palisades facility of Entergy Corp (NYSE:ETR), which may be eligible, is scheduled to close on May 31.

Entergy stated in an email that it was committed to closing the plant after CEO Leo Denault stated in an April earnings call that there are "major technical and commercial obstacles" to changing course at this time.

Denault stated at the time that Entergy would collaborate with "any eligible party interested in owning the plant and receiving federal funds."

The PG&E (NYSE:PCG)-owned Diablo Canyon facility in California is planned to close in 2025. Tuesday, a corporate representative stated that the utility had not yet determined whether or not to apply for the cash.

Ken Cook, president of the Environmental Working Group, criticized CNC as a "waste of scarce resources" that impedes the transition of the nation and California to renewable electricity.