{"id":5375,"date":"2013-08-27T14:25:24","date_gmt":"2013-08-27T18:25:24","guid":{"rendered":"http:\/\/www.l-a-k-e.org\/blog\/?p=5375"},"modified":"2013-08-27T14:27:07","modified_gmt":"2013-08-27T18:27:07","slug":"entergy-shutting-down-vermont-yankee-nuke-tenth-down-or-never-to-be-built-in-past-year","status":"publish","type":"post","link":"http:\/\/www.l-a-k-e.org\/blog\/2013\/08\/entergy-shutting-down-vermont-yankee-nuke-tenth-down-or-never-to-be-built-in-past-year.html","title":{"rendered":"Entergy shutting down Vermont Yankee nuke: tenth down or never to be built in past year"},"content":{"rendered":"

\r\nAs Entergy\r\n\r\nhas been preparing to do for some time<\/a>,\r\nit’s down forever for Vermont Yankee.\r\nThat’s at least ten (10) down forever\r\n(Vermont Yankee,\r\nKewaunee<\/a>,\r\nCrystal River 3<\/a>,\r\nSan Onofre 2 and 3<\/a>)\r\nor never to be built\r\n(Calvert Cliffs 3<\/a>,\r\n\r\nSouth Texas Nuclear Project 3 and 4<\/a>,\r\nBellefonte<\/a>,\r\nand\r\n\r\nLevy County<\/a>)\r\nin the past year.\r\nHow many will it take before Southern Company (or more likely GA PSC\r\nor even the Georgia legislature)\r\nrealizes\r\n\r\nnew nukes make no financial sense<\/a>\r\nand terminates the Plant Vogtle 3 and 4 boondoggle on the Savannah River?\r\n

\r\nEntergy blamed Vermont Yankee on shale gas, but you ain’t seen nothing yet, as\r\n\r\nMoore’s Law for solar really kicks in<\/a>.\r\nNext one to go: I say \r\nEntergy’s often-down Pilgrim 1 in Massachusetts<\/a>;\r\neverything Entergy said about Vermont Yankee applies in spades to Pilgrim 1.\r\nOr maybe\r\n\r\nten-times-down-this-year Palisades<\/a>.\r\nOr bouncy man-killer\r\n\r\nArkansas Nuclear One<\/a>.\r\nSo many to choose from!\r\n

\r\nEntergy PR on Market Watch today,\r\n\r\nEntergy to Close, Decommission Vermont Yankee\r\n–Decision driven by sustained low power prices, high cost structure and wholesale electricity market design flaws for Vermont Yankee plant –Focus to remain on safety during remaining operation and after shutdown<\/a>,\r\n

\r\n

\r\nNEW ORLEANS, Aug. 27, 2013 \/PRNewswire via COMTEX\/ — Entergy\r\n\r\n<\/a>\r\nCorporation ETR -0.21% today said it plans to close and decommission\r\nits Vermont Yankee Nuclear Power Station in Vernon, Vt. The station\r\nis expected to cease power production after its current fuel cycle\r\nand move to safe shutdown in the fourth quarter of 2014. The station\r\nwill remain under the oversight of the Nuclear Regulatory Commission\r\nthroughout the decommissioning process.\r\n<\/p>\r\n

\r\n“This was an agonizing decision and an extremely tough call for us,”\r\nsaid Leo Denault, Entergy’s chairman and chief executive officer.\r\n“Vermont Yankee has an immensely talented, dedicated and loyal\r\nworkforce, and a solid base of support among many in the community.\r\nWe recognize that closing the plant on this schedule was not the\r\noutcome they had hoped for, but we have reluctantly concluded that\r\nit is the appropriate action for us to take under the\r\ncircumstances.”\r\n<\/p>\r\n

\r\nThe decision to close Vermont Yankee in 2014 was based on a number\r\nof financial factors, including:\r\n<\/p>\r\n

\r\n— A natural gas market that has undergone a transformational\r\nshift in supply due to the impacts of shale gas, resulting in\r\nsustained low natural gas prices and wholesale energy prices.\r\n<\/p>\r\n

\r\n— A high cost structure for this single unit plant. Since\r\n2002, the company has invested more than $400 million in the safe\r\nand reliable operation of the facility. In addition, the financial\r\nimpact of cumulative regulation is especially challenging to a small\r\nplant in these market conditions.\r\n<\/p>\r\n

\r\n— Wholesale market design flaws that continue to result in\r\nartificially low energy and capacity prices in the region, and do\r\nnot provide adequate compensation to merchant nuclear plants for the\r\nfuel diversity benefits they provide.\r\n<\/p>\r\n

\r\nMaking the decision now and operating through the fourth quarter of\r\n2014 allows time to duly and properly plan for a safe and orderly\r\nshutdown and prepare filings with the NRC regarding shutdown and\r\ndecommissioning. Entergy will establish a decommissioning planning\r\norganization responsible for planning and executing the safe and\r\nefficient decommissioning of the facility. Once the plant is shut\r\ndown, workers will de-fuel the reactor and place the plant into\r\nSAFSTOR, a process whereby a nuclear facility is placed and\r\nmaintained in a condition that allows it to be safely secured,\r\nmonitored and stored.\r\n<\/p>\r\n

\r\n“We are committed to the safe and reliable operation of Vermont\r\nYankee until shutdown, followed by a safe, orderly and\r\nenvironmentally responsible decommissioning process,” Denault said.\r\n<\/p>\r\n

\r\nCommenting on the future of nuclear power, Denault said: “Entergy\r\nremains committed to nuclear as an important long-term component of\r\nits generating portfolio. Nuclear energy is safe, reliable,\r\ncarbon-free and contributes to supply diversity and energy security\r\nas part of a balanced energy portfolio.”\r\n<\/p>\r\n

\r\nFinancial Implications\r\n<\/p>\r\n

\r\nEntergy plans to recognize an after-tax impairment charge of\r\napproximately $181 million in the third quarter of 2013 related to\r\nthe decision to shut down the plant at the end of this current\r\noperating cycle. In addition to this initial charge, Entergy expects\r\nto recognize charges totaling approximately $55 to $60 million\r\nassociated with future severance and employee retention costs\r\nthrough the end of next year. These charges will be classified as\r\nspecial items, and therefore, excluded from operational results.\r\n<\/p>\r\n

\r\nThe company noted that the estimated operational earnings\r\ncontribution from Vermont Yankee was expected to be around breakeven\r\nin 2013, and generally declining over the next few years. As a\r\nresult of this decision and based on continuing operations into\r\nfourth quarter 2014, the estimated operational earnings change,\r\nexcluding these special items, is expected to be modestly accretive\r\nwithin two years after shutdown, and cash flow is expected to\r\nincrease approximately $150 to $200 million in total through 2017,\r\ncompared to Vermont Yankee’s continued operation.\r\n<\/p>\r\n

\r\nRegarding decommissioning, assuming end of operations in fourth\r\nquarter 2014, the amount required to meet the NRC minimum for\r\ndecommissioning financial assurance for license termination is $566\r\nmillion. The Vermont Yankee decommissioning trust had a balance of\r\napproximately $582 million as of July 31, 2013, excluding the $40\r\nmillion guarantee by Entergy Corporation to satisfy NRC requirements\r\nfollowing the 2009 review of financial assurance levels. Filings\r\nwith the NRC for planned shutdown activities will determine whether\r\nany other financial assurance may be required and will specifically\r\naddress funding for spent fuel management, which will be required\r\nuntil the federal government takes possession of the fuel and\r\nremoves it from the site, per its current obligations.\r\n<\/p>\r\n

\r\n\r\n<\/a>\r\nVermont Yankee, a single unit boiling water reactor, began\r\ncommercial operation in 1972. Entergy acquired the plant from\r\nVermont Yankee Nuclear Power Corporation in 2002. In March 2011, the\r\nNRC renewed the station’s operating license for an additional 20\r\nyears, until 2032.\r\n<\/p>\r\n

\r\nAdditional information regarding today’s announcement is available\r\nin the Frequently Asked Questions section of www.entergy.com.\r\n<\/p>\r\n

\r\nEntergy Corporation, which celebrates its 100th birthday this year,\r\nis an integrated energy company engaged primarily in electric power\r\nproduction and retail distribution operations. Entergy owns and\r\noperates power plants with approximately 30,000 megawatts of\r\nelectric generating capacity, including more than 10,000 megawatts\r\nof nuclear power, making it one of the nation’s leading nuclear\r\ngenerators. Entergy delivers electricity to 2.8 million utility\r\ncustomers in Arkansas, Louisiana, Mississippi and Texas.\r\n<\/p>\r\n

\r\nAdditional information can be accessed online atwww.entergy.com.\r\n<\/p>\r\n

\r\nIn this news release, and from time to time, Entergy makes certain\r\n“forward-looking statements” within the meaning of the Private\r\nSecurities Litigation Reform Act of 1995. Except to the extent\r\nrequired by the federal securities laws, Entergy undertakes no\r\nobligation to publicly update or revise any forward-looking\r\nstatements, whether as a result of new information, future events or\r\notherwise.\r\n<\/p>\r\n

\r\nForward-looking statements involve a number of risks and\r\nuncertainties. There are factors that could cause actual results to\r\ndiffer materially from those expressed or implied in the\r\nforward-looking statements, including (a) those factors discussed in\r\nthis release and in: (i) Entergy’s Form 10-K for the year ended Dec.\r\n31, 2012, (ii) Entergy’s Form 10-Q for the quarters ended March 31,\r\n2013 and June 30, 2013 and (iii) Entergy’s other reports and filings\r\nmade under the Securities Exchange Act of 1934; (b) uncertainties\r\nassociated with rate proceedings, formula rate plans and other cost\r\nrecovery mechanisms; (c) uncertainties associated with efforts to\r\nremediate the effects of major storms and recover related\r\nrestoration costs; (d) nuclear plant relicensing, operating and\r\nregulatory risks, including any changes resulting from the nuclear\r\ncrisis in Japan following its catastrophic earthquake and tsunami;\r\n(e) legislative and regulatory actions and risks and uncertainties\r\nassociated with claims or litigation by or against Entergy and its\r\nsubsidiaries; (f) conditions in commodity and capital markets during\r\nthe periods covered by the forward-looking statements, in addition\r\nto other factors described elsewhere in this release and subsequent\r\nsecurities filings and (g) risks inherent in the proposed spin-off\r\nand subsequent merger of Entergy’s electric transmission business\r\nwith a subsidiary of ITC Holdings Corp. Entergy cannot provide any\r\nassurances that the spin-off and merger transaction will be\r\ncompleted and cannot give any assurance as to the terms on which\r\nsuch transaction will be consummated. The spin-off and merger\r\ntransaction is subject to certain conditions precedent, including\r\nregulatory approvals.\r\n<\/p>\r\n

\r\nSOURCE Entergy Corporation\r\n<\/p>\r\n<\/blockquote>\r\n

\r\n -jsq\r\n<\/p>","protected":false},"excerpt":{"rendered":"As Entergy has been preparing to do for some time, it’s down forever for Vermont Yankee. That’s at least ten (10) down forever (Vermont Yankee, Kewaunee, Crystal River 3, San Onofre 2 and 3) or never to be built (Calvert Cliffs 3, South Texas Nuclear Project 3 and 4, Bellefonte, and Levy County) in the […]","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_links_to":"","_links_to_target":""},"categories":[14,18,19,6124,104,23,73,24,3],"tags":[712,8704,663,8701,8708,8709,8702,12,7,562,8737,107,8713,8731,8714,108,8700,6,352],"class_list":["post-5375","post","type-post","status-publish","format-standard","hentry","category-economy","category-georgia-power","category-history","category-natural-gas-2","category-nuclear","category-renewable-energy","category-safety","category-solar","category-transparency","tag-boondoggle","tag-economy","tag-entergy","tag-georgia","tag-georgia-power","tag-history","tag-lake","tag-lowndes-area-knowledge-exchange","tag-lowndes-county","tag-natural-gas","tag-nuclear","tag-plant-vogtle","tag-renewable-energy","tag-safety","tag-solar","tag-southern-company","tag-transparency","tag-valdosta","tag-vermont-yankee"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p585fK-1oH","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts\/5375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/comments?post=5375"}],"version-history":[{"count":4,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts\/5375\/revisions"}],"predecessor-version":[{"id":5378,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts\/5375\/revisions\/5378"}],"wp:attachment":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/media?parent=5375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/categories?post=5375"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/tags?post=5375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}