The A statement from the Vermont Energy Partnership
June 9, 2005

There is good news from Montpelier, where the Senate and House have voted overwhelmingly on an agreement that should enable Entergy, owners of the Vermont Yankee plant, to continue to provide safe, clean, low-cost power until 2012.

The agreement paves the way for Entergy to seek approval of Vermont's Public Service Board to store spent nuclear fuel in above ground steel reinforced concrete containers, a technology known as dry cask storage. Entergy also has agreed to increase its funding of the Vermont Clean Energy Fund by $15 million dollars. Entergy faced the possibility of being forced to close the plant if an onerous tax was imposed on an already costly storage program.

Instead, Entergy will continue to operate Vermont Yankee, assured that the state will honor the spirit of agreements arrived at three years ago when it purchased the plant.

Vermonters, in turn, will continue to enjoy the many economic and environmental benefits of the plant, including $250 million in estimated savings on their electric bills from 2002-2012.

This is a genuine win-win outcome and, undeniably, good news for all.

With legislators and Entergy arriving at this prudent compromise, it seems a good time to reflect on the history of Entergy's presence in Vermont and the vital role of the Yankee plant in the state.

When Entergy purchased Yankee from a consortium of New England utilities, the state welcomed the company to the state chiefly on the strength of its reputation for operating nuclear plants efficiently and safely. Entergy earned this reputation by hard work and by making significant investments to upgrade plants to ensure their safe operation. They have done this with Yankee. Entergy promotes a culture of excellence and has made a commitment to safety. Its employees take pride in this commitment and embrace this culture. The evidence is in the excellent ratings received by Entergy's plants and by its recent selection by the Nebraska Public Power District to be operators of their nuclear plant.

Entergy's excellent reputation had been established when it purchased Vermont Yankee in 2002. It was also understood, then, that the dry storage of waste at the plant might eventually become necessary.

All nuclear power plants in the United States store spent fuel in large, reinforced water pools. In recent years, with delays in the Federal Government's program to develop a national storage facility for spent fuel, the pools at many plants began to reach capacity.

To meet growing storage needs, operators began to employ the "'dry cask' technology". The system uses cylinders made of concrete and steel. These are 19 feet tall and 11 feet wide. The cylinder walls are two feet thick. Fuel that has been cooling for several years in the on-site pool, is placed inside these cylinders which are then stored, outside the plant, on a concrete pad approximately three feet thick.

Extensive testing has demonstrated conclusively that the steel-reinforced concrete casks can withstand the effects of tornadoes, fires, floods, projectiles and other possible threats.

Twenty-four active nuclear plants currently store spent fuel in dry casks. The system has a 20-year history of reliability and safety. Furthermore, the design of the casks allows them to be transported to a permanent storage facility when the federal government provides one.

With this new agreement in place, Entergy will begin a $30 million construction project that will allow dry cask storage to begin at the plant in 2007. There will be no disruption of service and the plant will continue to provide one-third of the state's current needs for electricity at a bargain, fixed rate - 3.95 cents per kilowatt/hour as compared to an open market price of over 5.5 cents per kilowatt/hour.

Three years into a ten-year contract, at this very favorable rate, ratepayers in Vermont have saved some $40 million. Over the remaining years of the contract, they will save another $210 million. The electricity Entergy sells to Vermont utilities is not only cheap, it is reliable. The state was spared during the recent blackouts thanks, in part, to the Yankee plant. And this power, by the way, is clean. Replacement electricity would inevitably be generated by plants that burn oil, coal, or natural gas and produce greenhouse gasses. Furthermore, Yankee pays taxes. In 2003, these came to some $10 million in total state and local taxes.

Then, there are the 600 high-skill, high-paying jobs the plant provides, as well as another 600- 800 jobs that become available during the temporary refueling shutdowns that occur every 18 months. Yankee also purchases some $15 million in local products and services every year.

All these things, in our view, make a strong case for Entergy as a vital asset to our state's economy and environment and we congratulate, and thank, the prudent voices in Montpelier whose common sense arguments have prevailed.

Vermont Energy Partnership, Inc. is a diverse group of business, labor, and community leaders committed to finding clean, low-cost and reliable electricity solutions to ensure Vermont stays a great place to live and work.