Jeremy L. Dillon
RW Monitor
1/9/2014
The Vermont Yankee Power Station in Vernon, Vt. officially ceased operations last week, ending the reactor’s 42-year operation life. Entergy, the plant operator, announced last year that it would be entering premature shutdown of the Vermont Yankee station at the end of 2014, despite receiving a 20-year license extension from the Nuclear Regulatory Commission. The company cited economic factors as the basis for the shutdown, although Entergy and Vermont had been engaged in a contentious court battle over its licensing.
Entergy President Bill Mohl reiterated the economic argument last week as the main reason for the shutdown. “Economic factors, especially related to the natural gas market in the Northeast, are the primary reason for the shutdown,” Mohl said in a statement. “The Northeast has undergone a shift in supply because of shale gas, resulting in sustained low natural gas prices and low wholesale energy prices. Wholesale market design flaws result in artificially low energy and capacity prices in the region, and do not provide adequate compensation to merchant nuclear plants for the fuel diversity benefits they provide.” He added, “Vermont Yankee also bears a high cost structure, partly because of regulation at the federal, local and state levels. In addition to higher costs, this increased regulation has created an atmosphere of unpredictability that is not optimal for long-term infrastructure like a power plant.”
For Vermont, the plant’s shutdown represents a major victory as its tries to pivot toward a more renewable energy portfolio. “The closure of Vermont Yankee marks the end of years of controversy over operation of a nuclear plant in our state,” Vermont Gov. Peter Shumlin said in a statement. “I have long advocated for the closing of this plant at the end of its original license, and I believe the ceasing of operations today after nearly 43 years represents a positive step for our state and our energy future.” Shumlin added, “We will also continue to work with Entergy and community partners to ensure that decommissioning happens as promptly and smoothly as possible.”
Vermont and Entergy came to an agreement at the end of 2013 that stipulated the utility will place the plant in SAFESTOR only until its decommissioning fund collects enough money to cover the costs of decommissioning, estimated at $1.24 billion. Previously, Entergy had said it would use the full 60 years granted under NRC regulations of SAFESTOR, but in this agreement, the decommissioning of the plant will occur much sooner.
Plant Removing Fuel, Prepping for SAFESTOR
Entergy, meanwhile, has begun the preparation work and tests needed to prepare the plant for extended storage, according to spokesman Marty Cohen. The main focus at the plant right now, Cohen said, was removing the fuel from the reactor to the spent fuel pool, which should be completed by Jan. 19. After that initial step is complete, the utility will begin to look at areas of the plant that can be dismantled and removed so as to enter the plant into SAFESTOR. “We are shutting down those processes that we can safely shutdown, like turning the water off and that kind of stuff,” Cohen said. “There will be opportunities to dismantle some of the part of the plant with low-level contamination and no contamination. We have, as yet, not scheduled any work though.” Cohen added, “We were waiting for the shutdown, and we’ve planned what we need to do. The first few months are a lot of testing. Once we have a good handle on what needs to be done, we will find out if we have an in-house ability to do some of this work or we need to contract out.”
Entergy Submits Vermont Yankee PSDAR
Meanwhile, Entergy submitted on Dec. 19 the Post-Shutdown Decommissioning Activities Report for Vermont Yankee, with minimal changes to the plan outlined in its site assessment report the company issued in 2014. The PSDAR estimated the cost of the cleanup at $1.24 billion, with costs associated with terminating the NRC operating license at $817 million, spent fuel management at $368 million, and site restoration at $57 million. Entergy also is seeking an additional $145 million credit line to help pay for initial spent fuel management costs.
Because the reactor is shutting down prematurely, its decommissioning trust fund has not accrued enough interest to cover the costs. The SAFESTOR option enables the fund to grow enough to cover the costs, and Entergy has pledged to the state of Vermont it would not use the full 60 years allotted under the NRC regulation, rather it would begin when the fund had the necessary funds. The fund has approximately $665 million as of Nov. 30, 2014, the utility said. Entergy anticipates beginning work in 2040, with spent fuel moved to dry cask storage by 2020.
The Nuclear Regulatory Commission opened this week the public comment period for the PSDAR, while scheduling a public meeting in Vermont on the plan for next month. Comments can be submitted to the NRC until March 23, and the public meeting will take place on Feb. 19 in Brattleboro, Vt.
