Photo from the Nuclear Regulatory Commission

On June 4, Judge Reiss of the Federal District Court in Burlington, Vermont will take up the latest lawsuit from Vermont Yankee’s owners. Once again, Entergy, the owner and operator of Vermont’s tired old nuclear plant, is asking a federal court to give it a free pass.

Entergy wants to stop Vermont regulators from having any say over its operations.

This latest skirmish involves the building of a back-up diesel generator. Entergy claims the Nuclear Regulatory Commission requires the generator and that Vermont is getting in its way. It needs the Federal Court to stop any Vermont review of the proposal.

Hold on. Vermont’s regulators already issued a proposal that would approve the generator. The only deadline is one that is self-imposed by Entergy. The current schedule allows a final decision even before Entergy’s self-proclaimed “deadline.”

So what’s this really about? Entergy’s world view seems to suggest that the less oversight it has the better. But that’s not good for Vermont. The federal court should see through Entergy’s antics and allow the Vermont proceedings to continue.

You can read Entergy’s Complaint here and the State’s reply here.

Can the Vermont Public Service Board determine the meaning of its own orders? The answer would seem to be “Of Course!” But that is the question that Vermont Yankee’s owners are putting before the Vermont Supreme Court.

In two orders the Vermont Public Service Board issued a strong rebuke to Entergy.

The Board refused to amend its prior orders and confirmed that the conditions of Entergy’s permits remain intact. Those conditions include that Entergy will not operate Vermont Yankee past March 2012 without new approval from the Board.

Entergy brought this appeal to challenge those orders.

On Monday Conservation Law Foundation’s brief, filed jointly with New England Coalition and Vermont Public Interest Research Group challenged Entergy’s claims. Our brief noted:

Rather than comply with the conditions … and Board orders that were not appealed, Entergy instead seeks to ignore Vermont law and expand the application of this simple statute to sanction continued operation regardless of the current license requirements and prior commitments that were incorporated into the Board’s Order approving the sale of the plant to Entergy.

The State of Vermont also filed a brief opposing Entergy’s appeal.

It seems obvious that Entergy should be held to its commitments. We gave the Vermont Supreme Court some good arguments to encourage it to agree with us. Entergy will file a reply brief next month and a decision is expected within a year.

photo courtesy of Shannon Henry @ flickr.com

The past few weeks have not been kind to Vermont Yankee or its owners. Investment analysts continue to raise doubts about Yankee’s economic future. It is costing more to run the plant and its future looks bleak.

In Vermont, hearings began last week before the Public Service Board on whether state approval should be granted. Entergy’s four – that’s right, four – law firms are packing the hearing room, but the plethora of high-priced lawyers are having a hard time showing that Vermont will be better off to keep the plant running. Much of their time is spent raising objections and claiming nearly every matter is out of bounds, and cannot be considered by the Board.

The Board must decide if continued operation is in Vermont’s best interests. Matters of radiological safety cannot be considered by the state board, but matters of economics, power supply and the environment are fair game.

During the first week of hearings, Vermont Yankee’s witnesses were on the stand. It was an impressive collection of corporate executives, economists, professors and power professionals. Their testimony had been previously submitted in writing. The hearings allowed the Board and the parties to ask questions.

Just like the tired old plant, the questions revealed real cracks in Vermont Yankee’s claims. One of Entergy’s top executives acknowledged “very serious issues” regarding “misinformation” about the existence of underground pipes at the plant in 2010. He also acknowledged a number of past incidents where penalties had been imposed for failing to follow required rules.

On power supply, the plant is not needed for reliability. The lights will still stay on without Vermont Yankee. There is an excess of power available in New England and the growth in renewables alone over the next decade is greater than the total output of Vermont Yankee.

When asked about environmental problems at the plant, Entergy’s executive confessed he is not an expert on environmental law noting he took that class “Pass/Fail” in law school. Too bad. Vermont deserves better.

Hearings continue February 19 at the Vermont Public Service Board, and are expected to finish February 25. The Board has asked for additional Entergy witnesses to explain how it has complied with prior commitments and also about events that happened in 2010. The State of Vermont, Conservation Law Foundation and the other parties will then make available their witnesses who will answer questions about power supply, the environment and economics.

Keeping the lights on shouldn’t be this difficult. The response by Entergy to the outage at the Super Bowl is very reminiscent of the responses by Entergy to the many problems at its Vermont Yankee nuclear plant. It boils down to a piece of equipment failed and the power went out. A repeated problem at Vermont Yankee has been equipment failures – from cooling tower collapses to leaking pipes.

Sure problems happen, but c’mon. Enough already. The problem is that the same company that can’t keep the lights on for the Super Bowl is also challenged to keep its nuclear fleet running smoothly.

Even without news of the Super Bowl outage, UBS issued another report  about the shaky financial future of Vermont Yankee. The report states:

“We continue to believe Entergy is likely to decommission at least one of its units, such as Vermont Yankee, in 2013. We anticipate the process of decommissioning will become of greater importance to Entergy shareholders, as concerns around shareholder-financed contributions to decommissioning funds continue to garner concern.”

The financial outlook looks bleak. Meanwhile, next week hearings begin at the Vermont Public Service Board about Vermont Yankee’s future. Entergy has money to keep four law firms employed working on the case. That money would be better spent closing the plant and cleaning up the site.

photo courtesy of topher76@flickr.com

This past week has shown Vermont first-hand the high cost of nuclear power. Hosting a plant in your state is clearly a high-stakes bargain.

Vermont went to Court in Manhattan this week before a three judge panel at the United States Court of Appeals. (Read more here and here). It had fifteen minutes for its lawyer to explain to the judges why the decision of the District Court blocking the actions of the Vermont Legislature should be reversed. A tough task.

With clarity and nimbleness, Vermont proved it was up to the task. Its lawyer, Attorney David Frederick, an experienced appellate lawyer who argued a case last week before the United States Supreme Court, explained that Vermont has every right to determine Vermont Yankee’s fate. And doing so does not impinge on the federal government’s oversight of radiological issues.

In a nutshell, there were three points.

First the United States Supreme Court case from 1983 that let stand a California law enacting a moratorium on nuclear plants would allow the Vermont law. If a state can ban all nuclear plants, it can certainly allow the Legislature to determine the fate of one plant.

Second, the lease on Vermont Yankee expired and like a landlord, Vermont can simply refuse to renew the lease. Period. Any tenant knows this. Vermont is hosting this plant and can say it wants the property used for another purpose.

Third, Vermont has huge skin in the game and economic exposure from Vermont Yankee. If Entergy, the owner of Vermont Yankee, goes bankrupt or simply chooses to walk away, Vermonters are left holding the bag for what Conservation Law Foundation has described as the nuclear equivalent of junk car in its backyard. This possibility is more likely following recent reports that Vermont Yankee is not pulling its weight and that Entergy would be better off closing the plant.

The stakes are high. Apart from hosting this plant, Entergy is seeking to recoup over $4 million in legal fees, and now has four law firms working to push every legal angle possible. Times change. When Vermont first approved the Vermont Yankee facility in the 1970s, there was a hearing for three days before the Vermont Public Service Board. Clearly nuclear power and hosting plants is more expensive and time consuming than ever.

Vermont is right to begin extracting itself from this nuclear legacy. Unfortunately, that is proving to be not so easy.

Photo courtesy of Andy Hares @ flickr.com

The financial world is waking up to what a drag Vermont Yankee really is. The tired, old and leaking nuclear plant in Vermont is not carrying its weight. Financial analysts report that Vermont Yankee is economically vulnerable and a retirement announcement would boost stock prices for its parent, Entergy.

You can read the UBS Investment Research report “Re-assessing Cash Flows from the Nukes” here. It states:

“Notably, we believe both its NY Fitzpatrick and Vermont Yankee plants are at risk of retirement given their small size; while potentially negative to sentiment, an announcement to retire the units would likely drive positive FCF revisions.”

Clearly it is past time to close this plant.

Analysts today dropped the projected price target for Entergy’s stock. They see high debt and little cash coming in. Not good news for any investment.

It is good the financial world is waking up to what Vermonters have known for years. Vermont Yankee is not a good deal. It hasn’t been for years. It is expensive and financially risky. Conservation Law Foundation submitted testimony to the Public Service Board on the lousy economics of allowing Vermont Yankee to continue to operate. It does not have enough money for decommissioning, low energy prices mean it is not making money and any problems would saddle Vermont with big problems. You can read CLF’s testimony here.

These are not problems we need. Nuclear power was once touted as too cheap to meter. That has never been true. Now it is too expensive to even keep operating. Thank goodness financial markets are waking up to this fact.

photo courtesy of strikkelist@flickr.com

Regulators issued another strong rebuke to the owners of Vermont Yankee. The Vermont Public Service Board strongly rejected Entergy’s requests to change prior orders. Entergy continues to operate in defiance of Vermont law. Patience with this sort of behavior is wearing thin.  Read the decision here.

Entergy asked to change orders so that it would have authority to operate past March 21, 2012. The Board strongly rejected that request. As the Board’s conclusion states:

For the reasons set out above, the Board denies Entergy VY’s motion to amend Condition 8 of the Sale Order, which prohibited operation of the Vermont Yankee Nuclear Power Station after March 21, 2012, without Board approval and conditions in the Dry Fuel Storage Order and CPG that limit the amount of spent nuclear fuel that Entergy VY may store at the Vernon site to amounts generated from operation up to March 21, 2012.

Entergy knew and agreed to the commitment not to operate after March 2012 and had ample time to challenge or seek amendment earlier. Entergy didn’t.

Instead, Entergy chose to defy the Board’s orders, walk away from its commitments, thumb its nose at Vermont and just continue to operate. It then asked the Board to change the prior orders, claiming hardship and that being held to its prior commitments was somehow unforeseeable.

The Board roundly rejected each of Entergy’s claims. Any hardship is Entergy’s own making based on its own tactical decisions, and does not justify changing the rules after the fact.

Entergy’s in a very tight box. It cannot prove to the Board that it is a trustworthy operator when at the same time it is operating in bold defiance of the same Board’s orders.

When:  Monday evening, November 19, 2012 beginning at 7 pm.

Where:  Vermont Interactive Television sites around Vermont – Find locations here.

What:  Should Vermont Yankee – a tired, old nuclear facility on the banks of the Connecticut River retire and its untrustworthy owners close shop?

How:  Speak up at a public hearing. This is YOUR chance to let YOUR voice be heard.

Help put an end to Vermont Yankee’s troubled history.

The Vermont Public Service Board will determine if Vermont Yankee should be allowed to operate for another twenty years. A disappointing court case decided last spring said issues of radiological health and safety can only be decided by the Nuclear Regulatory Commission, but Vermont regulators will decide if continued operation of Vermont Yankee by its untrustworthy owners makes sense for Vermont’s economy, environment and power supply.

Need a refresher? Here is a list of newspaper headlines about problems at Vermont Yankee since the collapse of the cooling tower in 2007.

More information is available from the Public Service Board website.

Tips and issues to talk about:

1. Environment – Heated water from the plant is harming fish and habitat in the Connecticut River. This has been getting worse and Entergy’s studies have been faulty.
2. Economics – There is little value to Vermont from the continued operation of the plant. There is the equivalent of a junk car on the banks of the river. Money has not been added to the decommissioning fund and it is inadequate to close and clean up the site.
3. Untrustworthy owners – Entergy is not a good partner for Vermont. Their executives provided false testimony to regulators  and continue to break promises, including a promise that they would close in March 2012.
4. Energy Plan – Vermont is moving away from older and more polluting forms of energy towards clean renewable energy. Vermont Yankee is not part of a sustainable energy future for Vermont.
5. No Need for Power — There is an excess of electric power available in New England now. The lights will stay on without Vermont Yankee.

Tell the Board what you think.

Written or email comments can also be provided.

Hats off to Vermont regulators for requesting the Nuclear Regulatory Commission (NRC) to put an end to the string of mishaps at the Vermont Yankee nuclear plant.

photo courtesy of shersteve@flickr.com

Vermont Yankee is an aging nuclear plant on the banks of the Connecticut River. It is increasingly showing its age and the time for stepped up oversight is long overdue. The request cites incidents that “continue to pile up”, including:

 “a misaligned valve in the pool where the plant stores highly radioactive spent fuel waste allowed 2,700 gallons of water to drain out of the pool. Another involved epoxy applied to a condenser to keep it from leaking; that interfered with the condenser’s operation and forced the plant to reduce its power output.”

It is time for the NRC to step in and show its willingness to exert more than lackluster oversight of the nation’s nuclear fleet.

With The New York Times reporting from Japan that “the nuclear accident at Fukushima was a preventable disaster rooted in government-industry collusion and the worst conformist conventions of Japanese culture,” it is important that similar problems not occur here in the US.

The NRC is responsible for matters concerning radiological health and safety at nuclear power plants. It is important that they provide real oversight and not have a cozy relationship with industry that lets problems “pile up” or human error and poor management continue.

Thank you Vermont regulators for keeping the pressure on the NRC.