By Tom Kleckner

Omaha Public Power District is recommending that its Fort Calhoun Nuclear Generating Station end operations by the end of 2016 and begin the decommissioning process.

CEO Tim Burke told OPPD’s Board of Directors on May 12 that an economic analysis concluded that Fort Calhoun “is not financially sustainable.”

“The analysis considered market conditions, economies of scale and the proposed Clean Power Plan,” Burke said in a statement.

The board is expected to vote on the recommendation at its June 16 meeting.

At 478.1 MW, the Fort Calhoun plant is the smallest nuclear unit in North America, lacking economies of scale. It is located on the Missouri River in eastern Nebraska and became operational in 1973. In 2003, the Nuclear Regulatory Commission extended its operating license through 2033.

The plant was surrounded by flood waters in 2011, when the reactor was idled for a scheduled refueling. Safety and security violations discovered after the flooding prevented it from returning to service until December 2013, following more than $140 million in repairs.

It has been managed since 2012 by Exelon Nuclear Partners. When operational, it provides 30% of OPPD’s net generation.

Burke said the decision was a difficult one and was “not reflective of employee or Exelon performance.”

“OPPD would make every effort to absorb as many employees as possible into other areas of the district, based on qualifications and open positions,” Burke said. “Retraining would be made available in cases where there would be strong potential for success.”

OPPD serves more than 310,000 customers in southeastern Nebraska. It has 3,080 MW of generating capacity, with two baseload coal-fired plants, one fueled by landfill gas and three peaking plants. It also purchases output from several wind farms.

The utility said it will consider constructing or purchasing additional gas, wind and solar generation “as necessary.”