The Vermont Yankee Power Station in Vernon, Vt. officially ceased operations last week ending the reactor’s 42 year operation life. Entergy, the plant operator, announced last year that it would be entering premature shutdown of the Vermont Yankee station at the end of 2014, despite receiving a 20 year license extension from the Nuclear Regulatory Commission. 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. Entergy President Bill Mohl reiterated the economic argument last week as the main reason for the shutdown. “Economic factors, especially related to the natural gas market in the Northeast, are the primary reason for the shutdown,” Mohl said in a statement. “The Northeast has undergone a shift in supply because of shale gas, resulting in sustained low natural gas prices and low wholesale energy prices. Wholesale market design flaws result in artificially low energy and capacity prices in the region, and do not provide adequate compensation to merchant nuclear plants for the fuel diversity benefits they provide.” He added “Vermont Yankee also bears a high cost structure, partly because of regulation at the federal, local and state levels. In addition to higher costs, this increased regulation has created an atmosphere of unpredictability that is not optimal for long-term infrastructure like a power plant,” he said.
For Vermont, the plant’s shutdown represents a major victory as its tries to pivot toward a more renewable energy portfolio. “The closure of Vermont Yankee marks the end of years of controversy over operation of a nuclear plant in our state,” Vermont Gov. Peter Shumlin said in a statement. “I have long advocated for the closing of this plant at the end of its original license, and I believe the ceasing of operations today after nearly 43 years represents a positive step for our state and our energy future.” Shumlin added, “We will also continue to work with Entergy and community partners to ensure that decommissioning happens as promptly and smoothly as possible.” Vermont and Entergy came to an agreement at the end of 2013 that stipulated the utility will place the plant in SAFESTOR only until its decommissioning fund collects enough money to cover the costs of decommissioning, estimated at $1.24 Billion. 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.
