Yankee shutdown fund bill advances
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By DANIEL BARLOW VERMONT PRESS BUREAU - Published: March 21, 2009
MONTPELIER The House Natural Resources and Energy Committee approved a bill Friday forcing the owner of the Vermont Yankee nuclear power plant to put more money toward its decommissioning.
The 8-2 committee vote Friday came after weeks of testimony about Vermont Yankee's decommissioning fund, which has dropped by nearly $100 million in the last 16 months as the financial markets collapsed.
The decommissioning bill which was opposed this week by Entergy Nuclear Vermont, the state's top two utilities and the Public Service Department is expected to appear on the House floor for a vote late next week.
Rep. Tony Klein, D-East Montpelier, the chairman of the committee, said Vermonters need to be protected from the possibility that Entergy would delay the full cleanup of the Vernon facility for decades as it builds up the money in its decommissioning fund.
The bill passed by the committee would see the land below the Vermont Yankee plant turned into a green field that could then be used to house new energy-generating companies or other commercial and industrial enterprises, Klein explained.
Jay Thayer, the vice president of Entergy Nuclear Vermont, told lawmakers Friday that he did not believe they have the authority to pass this bill because it disagrees with a Vermont Public Service Board decision in 2002 that allows the company to use the so-called "safstor" method of decommissioning the plant.
Thayer said Entergy is considering legal action if the bill passes.
"From a legal perspective, we don't think the Legislature can do what it is attempting to do," Thayer said. "This isn't a threat. This is the reality of us trying to protect how we do business in Vermont."
The bill requires Entergy to put $114.72 million in the fund in the years 2011, 2012, 2018 and 2020 a provision that would only be required if the company is given the OK by state and federal regulators and lawmakers to operate the plant beyond 2012, when its federal license expires.
Similar messages were delivered to lawmakers this week by members of Gov. James Douglas' administration and officials from Green Mountain Power and Central Vermont Public Service, two electrical utilities negotiating with Entergy on a new long-term power contract.
Steve Kimball, a Montpelier attorney and lobbyist for GMP, told lawmakers Thursday evening that the bill "violates an agreement between Entergy, its business partners and the Department of Public Service" over how the plant would be shutdown and cleaned up.
"The fact of the matter is, safstor was fully discussed and approved by the Vermont Public Service Board," Kimball said. "You can probably get away with this, but it smells."
Richard Smith, the deputy commissioner of the Public Service Department, had a similar message for lawmakers Friday. He said the department's position is that Entergy should prepare for decommissioning by 2032 the end of its new operating license if that is approved.
"I know you've heard it before, but we are concerned with the Legislature's attempt to null an agreement between the parties," Smith said. "That's bad policy."
Klein strongly defended his committee's work, saying the financial hit the decommissioning fund has taken puts in doubt Entergy's ability to clean up the site. He said the Public Service Department agreed to a bad deal.
"It was a bad idea then," Klein said. "And now it is an even worse idea."
Friday's vote was applauded by anti-nuclear organizations. Bob Stannard, a lobbyist for the Citizen Awareness Network, said the bill was necessary because the "fund is short and the future is uncertain."
"At a time when large companies need to be bailed-out or are falling to the wayside, this vote is arguably one of the most important ones the General Assembly can take to protect Vermonters," Stannard said.
Although a vast majority of the committee approved the bill Friday, it was a difficult vote for some. Rep. Kurt Wright, R-Burlington, one of the two no votes Friday, said it was a "very close call for me."
"I voted no today, but I reserve my right to vote differently on the House floor if I hear some information that changes my mind," Wright said.
Rep. Joseph Krawczyk, R-Bennington, the vice-chairman of the committee, supported the bill Friday, but said he is still hopeful there will be a legislative vote this year on the continued operation of Vermont Yankee.
Democratic leaders of the Legislature have taken that issue off the table until 2010, saying they need more information before making that decision. Krawczyk said he is hopeful the details of new power purchase agreements between Entergy and the utilities Thayer said the company will offer a deal next week will move the issue along.
"I feel the ball is in Vermont Yankee's court," he said.
daniel.barlow@timesargus.com
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