The Nuclear Regulatory Commission has issued a preliminary decision that say Entergy Nuclear Operations is in a strong enough financial position to continue operations at the James A. FitzPatrick Nuclear Power Plant in New York and the Pilgrim Nuclear Power Station in Massachusetts, according to a media report.
The ruling is tentative, VTDigger reported Wednesday.
The ruling also involves the Vermont Yankee NPP in Vernon, Vermont, which is currently shut down for decommissioning.
A group of four anti-nuclear power groups have challenged Entergy's financial viability for operations, claiming in a petition that the company is not financially sound and, therefore, cannot safely operate the nuclear facilities. According to the groups, which include the Citizen's Action Network, Entergy fails to meet financial qualifications required for an operating license.
The company permanently shuttered Vermont Yankee in December 2014, citing economic reasons for doing so.
The anti-nuclear groups, however, are pointing to a financial report from the Swiss bank UBS Securities that said “Entergy guidance clearly illustrates no cash generation from nukes.” The bank's report predicted Entergy's finances would run in the red in 2015 and 2016.
After requesting financial information on a voluntary basis, the NRC said Entergy appears to have enough funds to operate Pilgrim and FitzPatrick safely. The company, after furnishing the NRC with a third quarter 2013 Securities and Exchange Commission regulatory filing, has claimed that it has revenue from other operations that can cover the financial needs of the nuclear power operations if necessary, the NRC tentative ruling says.
“The petitioners’ request to shut down FitzPatrick and Vermont Yankee was denied because the facilities were found to be operating safely and additional actions are not required for the protection of public health and safety and the environment,” the NRC said in the tentative decision.
After a recent discussion with Entergy on how it planned to use the $660 million decommissioning trust fund, the NRC has, however, said some of the planned spending was questionable.
“We have identified several line-item expenditures that, at least at first glance, do not appear to be permissible under NRC regulations,” said Neil Sheehan, speaking for the NRC.
A spokesman for Entergy Nuclear Martin Cohn said the discussions over expenses was “fairly routine.”
While the NRC reviews the expense plan, the concern in Vermont stems from the idea that any trust fund moneys spent now will delay decommissioning, which Entergy has said it will not begin until the trust fund has grown to $1.2 billion.