Jeremy L. Dillon
RW Monitor
1/10/2014
Vermont and Entergy have come to an agreement after months of back and forth on a timeline for the decommissioning of the Vermont Yankee Power Station in Vernon, Vt. The agreement stipulates that Entergy will place the plant in SAFESTOR only until its decommissioning fund collects enough money to cover the costs of decommissioning. Previously, Entergy had said it would use the full 60 years granted under NRC regulations of SAFESTOR, but in this agreement, the decommissioning of the plant will occur much sooner than 60 years. “I am pleased we were able to put the past behind us and work constructively with the State to gain some certainty for Vermont Yankee’s workers and communities surrounding the plant,” said Entergy President Bill Mohl in a release. “Our agreement today is guided by principles that reflect Entergy VY’s desire for spent nuclear fuel to be moved from the spent fuel pool to dry cask storage in a timely manner, and that the decommissioning process should occur without unreasonable delay as soon as there are sufficient funds in the Nuclear Decommissioning Trust to complete decommissioning and remaining spent fuel management activities. This agreement makes clear that Vermonters need not be concerned that Entergy VY will delay decommissioning and related activities longer than necessary once we determine that the decommissioning trust fund has adequate money to complete these tasks.”
Entergy announced on Aug. 27 that it would be entering premature shutdown of the Vermont Yankee station and 2014 would be the last year of operation. The company cited economic factors as the basis for the shutdown, although Entergy and Vermont have been engaged in a contentious court battle over its licensing. The negotiations centered on the license renewal for the last year of operation. Vermont wanted a timely decommissioning timeline as well as a cash settlement to steady the economic impact of the surrounding community in order to grant the renewal. Entergy, for its part, sought re-imbursement from the state for attorney’s fees related to the lengthy court battles.
End of Legal Dispute
The agreement also includes the dismissal of all pending litigation between the two sides, although it is contingent on Vermont’s Board for a Certificate of Public Good’s approval. “Given Entergy’s decision to close Vermont Yankee next year, it’s time to put the court fights behind us and plan for the future,” Vermont Attorney General Bill Sorrell said in a release. “This Agreement will end all of the current legal disputes with Entergy VY so that we can focus on the significant issues ahead regarding decommissioning and site restoration. While there are still significant unknowns and potential issues on which Entergy VY and the State will have to work hard in the future to find common ground, I am gratified that this agreement makes clear Entergy VY’s intention to decommission the plant without unnecessary delay, so we avoid 60 years of SAFESTOR, while also protecting Vermont’s rights in the years ahead,” Sorrell said.
Easing the Transition for Windham County
Under the terms of the agreement, Entergy also agreed to make payments to steady the economic impact of the local community. Entergy will pay $10 million to Windham County over five years to help the local economy, and it will also make a $5 million tax payment to the state to ensure that Vermont has an opportunity to evaluate and implement any appropriate taxation related to the site after the end of operations, according to a release. “Vermonters know that I worked for many years to meet the promise made to Vermont when it was constructed that the plant be closed on schedule in 2012,” Vermont Gov. Peter Shumlin said in a release. “Now that Entergy VY has agreed to shut down the plant at the end of next year, I am pleased we have stopped the fighting and are instead focused on ways the State and Entergy VY can work together to ease the transition for Windham County and get the plant dismantled and site restored without unnecessary delay.”
The agreement also includes a cash payment from Entergy into a fund dedicated to site restoration. Entergy will put $25 million into the fund which is responsible for returning the site to ‘greenfield’ status. Vermont also will be first in line to purchase any land on the site that becomes publicly available.