Dominion said that it would proceed with its plans to close the 556-megawatt, single unit nuclear power station in the second quarter of 2013.
"After being reviewed for power system reliability impacts, the retirement of Kewaunee would not result in violations of applicable reliability criteria. Therefore, Kewaunee may retire immediately," MISO wrote in its letter to Dominion.
Dominion was unable to find a buyer for Kewaunee after it put the station up for sale in April 2011. The decision to sell Kewaunee was part of a regular review of the company's portfolio of assets to determine which assets fit strategically and support its objectives to improve return on invested capital and shareholder value. The company also was unable to grow its nuclear fleet in the Midwest to take advantage of economies of scale. In addition, Kewaunee's power purchase agreements are ending at a time of projected low wholesale electricity prices in the region.
Following shutdown, Dominion plans to meet its obligations to the two utilities that purchase Kewaunee's generation through market purchases until the power purchase agreements expire in December 2013.
Kewaunee Power Station, located on Lake Michigan about 35 miles southeast of Green Bay, began commercial operation in 1974. It has one Westinghouse pressurized water reactor. Dominion acquired the station in July 2005. In February 2011, the NRC renewed the station's operating license for an additional 20 years, until 2033.