Vermont Yankee: No new power deal for utilities
2:53 p.m.
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The Associated Press - Published: January 1, 2009
MONTPELIER — The owners of Vermont Yankee nuclear power plant have decided not to offer a new power contract to the state’s utilities, saying the current one is sufficient.
Regulators and legislators were awaiting the details of the agreement between the utilities and Entergy Corp. as they prepare to make a decision about whether the plant should be allowed to continue operating when its license expires in 2012.
In a letter to the Vermont Public Service Board, Entergy Corp. said the utilities already have a good deal if the plant’s license is extended another 20 years and shouldn’t expect more.
The utilities can have either a cut on their power price or keep the current revenue-sharing plan, Entergy said.
Under the plan, utilities that used to own Vermont Yankee would receive half of the proceeds from sales above a certain price for 10 years after the plant was relicensed. The utilities would be expected to return that revenue — an estimated $938.8 million over 10 years or $4,000 per household — to customers, Thayer wrote.
But the utilities were hoping for a better offer.
“They’ve publicly stated a position we find disappointing. We think more value has to be offered,” said Central Vermont Public Service Corp. spokesman Steve Costello. “If they want to have that plant relicensed, the critical measure is whether it provides value to Vermont.”
The revenue sharing plan was negotiated when Entergy bought the plant, said Green Mountain Power Corp. spokeswoman Dorothy Schnure. “We think there should be additional value for our customers for the plant to continue operating another 20 years,” she said.
She said the utilities are still negotiating with Entergy for a better deal.
Entergy is seeking to operate the plant for another 20 years and has applied for a certificate of public good from the Public Service Board but first needs legislative approval.
As they debate the issue in the upcoming session starting next week, legislators say they will be looking at the cost of electricity to Vermonters from Vermont Yankee compared to other sources.
“It is imperative that legislators know what the deal is very close to opening day to reasonably expect us to analyze it,” said Senate President Pro Tempore Peter Shumlin. “There’s no way we’re going to vote to re-license the plant unless Vermonters are getting a great deal.”
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