Karl Herchenroeder
RW Monitor
01/29/16
When Nuclear Regulatory Commission safety requirements are reduced at the Vermont Yankee Nuclear Power Station in April, New Hampshire, Massachusetts, and Vermont will leach lose millions of dollars in funding for emergency planning and groundwater monitoring from plant operator Entergy.
In December the NRC granted Entergy a standard safety requirement exemption, which will take effect on April 15. One important detail is that the plant’s 10-mile emergency planning zone will shrink to within the site’s boundaries. This means Entergy is no longer required to pay surrounding jurisdictions for emergency planning and groundwater monitoring. Vermont Yankee is located in Vernon, Conn., which is in the southeastern tip of the state where it intersects with New Hampshire and Massachusetts.
Entergy paid Vermont about $2.4 million for emergency planning and groundwater monitoring in 2014 and $1.6 million in 2015, with the current fiscal year set to expire June 30. Over the next few months, officials will meet with Entergy representatives about additional funding, though the amount moving forward is expected to be significantly lower. Entergy spokesman Marty Cohn described the talks as “finding the medium” between current funding and zero.
Vermont Public Service Department Commissioner Christopher Recchia, who is helping lead negotiations for the state, said officials are not looking for an amount anywhere close to existing funding. “But we are looking for some consistent continuation of that program. … We don’t need a lot, but we do need something,” he said Wednesday.
Cohn said Entergy has been “very receptive to negotiating with our community partners,” which is evidenced by a recent agreement with New Hampshire. There, Entergy has agreed to pay the state $279,000 over the next four years. The company paid New Hampshire $1.3 million in 2014 and $1.4 million in 2015 for emergency planning. Cohn added that the company is nearing a similar deal in Massachusetts, and “we remain open to discussions with Vermont.”
Vermont Gov. Peter Shumlin is preparing as if the funding will be cut entirely. On Jan. 21 he released his fiscal 2017 budget proposal, which is absent $1.6 million in funding for Vermont’s Radiological Emergency Response Program. The cut could result in the loss of several government positions, including jobs in Brattleboro, where officials manage groundwater testing at Vermont Yankee.
Entergy Withdrew $57.9M From Vermont Yankee Trust Fund in 2015
Entergy withdrew $57.9 million from the Vermont Yankee plant’s decommissioning trust fund in 2015, while the overall trust fund balance decreased by about $69.1 million.
That’s according to numbers Entergy released on Wednesday. The total trust fund balance as of Dec. 31, 2014, was recorded at $664.6 million; a year later it totaled $595.4 million, which is greater than the minimum balance required by the Nuclear Regulatory Commission. The total cost of decommissioning is currently projected at $1.2 billion.
Cohn said the $57.9 million withdrawal resulted from decommissioning expenses, including employee salaries, plant modification, and construction costs. Greater detail into the costs is expected in March, when Entergy submits its annual trust fund report to the NRC. The company also paid about $16.4 million in trust fund expenses and taxes, while earning about $5.3 million in interest and other trust fund income.
Vermont Yankee was placed into SAFSTOR after closing in December 2014, allowing the facility to sit until the trust fund accrues sufficient interest to cover the cost of decommissioning.
Cohn noted that the total balance at the end of 2015 was higher than the plant owner and the NRC had projected, saying the $57.9 million withdrawal was $5 million less than the company had anticipated.
Entergy’s use of the trust fund has been a hot-button issue, with the Vermont Attorney General’s Office filing a lawsuit against the company and requesting a comprehensive review of the account. Vermont has financial interest in the fund because 55 percent of funds left over from decommissioning will be returned to the facility’s original Vermont ratepayers. Attorney general offices in Connecticut, New Hampshire, and Massachusetts also have voiced support for Vermont’s effort.
Vermont Assistant Attorney General Kyle Landis-Marinello said Wednesday his office is awaiting the next step from the NRC, but up to this point, Entergy has been releasing limited information on withdrawals. One of the specific requests from Vermont in the legal proceeding has been for Entergy to give 30-day notice for each withdrawal, with details about how the money will be used.
“We’re getting very limited information on what they’re actually spending the money,” he said, adding that his office is anticipating the March filing.
