EDITORIAL: Ill-Advised Threats

Apr. 17--Entergy Nuclear Vermont Yankee site vice president Jay Thayer told the Senate Finance Committee Tuesday that if the Vermont Legislature requires Entergy to fully fund Vermont Yankee's decommissioning trust prior to receiving approval from the state for continued operation past 2012, the company will file a lawsuit to block it.

"I don't want it to sound like a threat, because it's not a threat, but Vermont Yankee does not make the kind of revenue that would allow this kind of payment," said Thayer.

Thayer also said that if the Legislature passes this bill, his company might be forced to shut down the nuclear power plant even before 2012.

Does Thayer think we are fools? Vermont Yankee generates about $100 million a year in revenues for Entergy, a figure that will grow even higher when its existing power contracts expire in 2012. And don't forget, Entergy only paid $180 million for the plant when it bought it in 2002.

And, barring a major mechanical failure, the Nuclear Regulatory Commission is almost guaranteed to give Entergy a 20-year license extension to operate Vermont Yankee until 2032. The plant will be generating big profits for years to come, as it has since the NRC authorized Entergy in 2006 to run the plant at 120 percent capacity.

Yet Thayer wants us to believe that Entergy can not pay $229 million into the cleanup fund between now and 2012. He also wants us to believe that the $359 million

that's currently in the find is enough to guarantee the site will be cleaned up adequately, whether Yankee closes in 2012 or 2032.

If Yankee does close in 2012, however, the plant would be mothballed -- or put into SAFSTOR, as the NRC calls it -- to allow the fund to grow to the estimated $1 billion necessary to decommission it. That could take anywhere between 20 and 60 years, depending on whose estimate you believe.

We believe Entergy is good for the money, and that the Legislature is right to insist upon it before Vermont Yankee receives a certificate of public good from the state Public Service Board.

Quite frankly, Thayer is bluffing when he said that if Entergy is forced to sue the state, it could lead to a shutdown of Vermont Yankee before 2012. The plant is too profitable to shut it down early, no matter what happens.

But, Entergy still has its ace in the hole in Montpelier. While Gov. James Douglas hasn't yet decided how he will respond if the decommissioning fund bill makes it to his desk, it's a very safe bet that he will veto it. Douglas has consistently sided with Entergy on almost every issue, and we see no sign that he is going to change.

Thayer's remarks Tuesday have a hint of desperation to them. Entergy's plan to spin off Vermont Yankee and five other reactors into a separate holding company fell apart in last fall's stock market crash. The fear that the spin-off would leave Yankee and the other plants with no assets besides a letter of guarantee and profits from the power they produce has led lawmakers to insist upon putting money into the decommissioning fund -- money Entergy would rather not pay.

We would urge lawmakers to stand their ground and not give in to the bullying and threats of Entergy. We would also urge them to ignore the bogus arguments of the Douglas administration that failure to give Entergy what it wants will result in higher electricity rates. The simple truth is that electric rates for Vermonters are going to go up after 2012, no matter what gets decided.

If the bill does become law, we doubt Entergy will go through with its threats. They have too much to lose by picking up their ball and go home. The fact of the matter is that Vermont Yankee will likely be running for another 20 years. The least that Entergy can do is ensure that it has enough money to remove the waste it generated and clean up the site in a timely fashion.

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