Most honest statement I ever heard from Entergy!
Our Opinion: Time to move forward
The Public
Service Board's announcement on Friday that it was approving a certificate of
public good for the operation until the end of the year of Vermont Yankee
nuclear power plant in Vernon was not wholly unexpected.
The board had
until March 31 to approve the CPG and a memorandum of understanding that was
agreed to by the state and Entergy in December 2013. The MOU had a number of
concessions from Entergy, which has owned and operated the plant since 2002,
including money specifically for economic development in Windham County ($10
million over five years) and the release of $5.2 million to the state's Clean
Energy Development Fund, at least half of which is targeted to the county.
Entergy also agreed to commence with cleaning up the site as soon as is fiscally
reasonable and not wait the 60 years authorized by the Nuclear Regulatory
Commission.
The Public
Service Board noted that while the state's past interactions with Entergy were
often contentious, resulting in litigation, acceptance of the MOU and approval
of the certificate was in the best interests of the state and its residents,
especially those in Windham County.
"The
Company's sustained record of misconduct has been troubling to observe over the
years ..." wrote the three members of the board. That record made the
board question whether Entergy could be going forward "a company that
lives by its commitments, adheres to legal requirements, including statutes and
rules, provides accurate and timely information, and generally is a fair
partner for Vermont."
However, noted
the PSB, the memorandum of understanding indicates both the state and Entergy
have been able to restore their working relationship.
"High-level
Entergy VY representatives have shown a positive evolution in their commitment
to the state of Vermont," wrote the board.
The board
revealed the text of an e-mail sent to then-CEO Wayne Leonard from Entergy
Corporation Vice President Curt Hebert, in which Hebert elaborated on Entergy's
problems with Vermont.
"We did
not get to this point because of poor communications strategy and lack of an
advertising corporate giant," wrote Hebert. "We are where we are
because people were sloppy, arrogant and unwilling to recognize that what
people outside of the nuclear facility think, matters more than they can ever
imagine ..."
In that e-mail,
Hebert indicated Entergy had a "broken culture" when it came to its
relationship with Vermont and its residents.
In an interview
with the Reformer a day after the MOU was announced, Bill Mohl,
president of Entergy Wholesale Commodities, attributed the change in the tenor
of the conversation between the state and Entergy to a change in leadership at
the energy giant.
"While we
certainly have had our differences in the past and went through an extensive
amount of litigation, it became very clear, when we made the decision to shut
down, that we really needed to take a step back and understand and be
thoughtful about how we approached this," he said.
Chris Recchia,
the commissioner of the Department of Public Service, was one of the people who
negotiated the MOU with Entergy and related to the Public Service Board his
impression of the willingness of the new corporate leaders to work with the
state.
"This
really provides a way forward and we are glad the board realized this,"
said Recchia. "It provides certainty for the workers at the plant as well
as for a careful and predictable shutdown and next steps moving forward with decommissioning."
Paul Burns, the
executive director of the Vermont Public Interest Research Group, wasn't so
enraptured by the MOU or the board's decision. VPIRG had repeatedly asked the
board to deny the CPG.
"The order
sends a troubling message," stated Burns in a press release,
"suggesting that a company with the worst kind of record of misconduct
could still merit a CPG. It does nothing to discourage that kind of behavior
from Entergy or any other company in the future."
And Ray Shadis,
speaking for the New England Coalition, which has fought Yankee's operation
since it went online in 1972, claimed the board's order was filled with
"numerous legal and factual errors ..."
"NEC did
not enter into this amended CPG for VY application process two dockets, six-plus
years, and more than $200,000 ago with the understanding that a pretty-much
unadorned offer of money (and little else) from the applicant to the regulators
could moot the whole thing," stated Shadis in a press release. "This
is not so much a settlement as a payoff and a capitulation."
We at the Reformer
have been watching this whole story unfold over the years and doing our
best to report back everything that has transpired. We followed the sale, the
uprate and the approval of on-site storage of spent nuclear fuel. We followed
the application for license renewal from the Nuclear Regulatory Commission and
the CPG process with the Public Service Board. We followed the Legislature's
decision to give itself the authority to prohibit Yankee's continued operation
and the federal lawsuit that resulted. We followed the news about the leak of
tritiated water at the plant that happened just months after Entergy
representatives testified there were no underground pipes carrying
radionuclides.
Some of us at
the Reformer have toured the power plant stood on the reactor vessel and
next to the spent fuel pool. We were the first to publish the pictures of the
collapsed cooling tower. We've been neck deep in Vernon for as long as the Reformer
has been in print and our coverage has only intensified since Entergy announced
the closure of the plant.
Friday's
announcement is not the end of the story, but it is the end of part of the
story. What's ahead now is nine more months of operation and then a long
decommissioning process.
We are
satisfied most of the issues have been settled and we are pleased by the
financial settlement. Windham County is going to need help when the power plant
closes, and the memorandum of understanding brings some sense that our future
is not as bleak as when we learned that 600 good-paying jobs would be gone at
the end of the year.
Yes, there is
still good reason to not trust Entergy, but as the board noted, if it hadn't
approved the certificate and the MOU, Yankee would have likely continued to
operate until the end of the year anyway. We will continue to keep a watchful
eye on Entergy, but we are glad the county is getting something out of the
deal, and that wouldn't have happened if the PSB had denied the certificate.
.