Because of state resistance to relicensing the Vermont Yankee nuclear plant, the Nuclear Regulatory Commission said Thursday that Entergy cannot count on revenue from its 20-year federal license extension at the plant to fund the account that will eventually pay for its decommissioning.
In a letter, NRC staff addressed a notice from Entergy that it would cancel a $40 million parent-company guarantee for the Vermont Yankee's decommissioning fund. Entergy argued that its payments into the fund until the extended federal license expires in 2032 would provide a $211 million surplus, making the parent-company guarantee unnecessary. The NRC disagreed:
“NRC staff has reviewed the notice of cancellation by (Entergy Nuclear Operations) and has determined that external factors may affect the licensee's decommissioning financial assurance. The reason for the NRC staff's decision is based on the ongoing civil court case Entergy Nuclear Vermont Yankee v. Shumlin. Also, on June 23, 2011, the State of Vermont Department of Public Service submitted a letter to the NRC stating that Vermont is currently reviewing land use, power needs, alternatives, costs, economic impacts and reliability for any generation source and has not determined that Vermont Yankee meets the state criteria for continued operation. Depending on the outcome of Vermont's review and VY v. Shumlin, Vermont Yankee may no longer operate after March 21, 2012. Under that condition, the anticipated earnings during the renewal period would not be realized. Because of the uncertainty surrounding the plant's future, cancellation of the guarantee at this time would be premature,” reads the letter from NRC plant licensing project manager James Kim.
Entergy did not have any immediate comment on the decision in Vermont news outlets Thursday.
The NRC has said the decommissioning fund had a balance of $474 million as of the end of 2010. An estimated $564 million would be needed to decommission the plant.