Speaker Damns Douglas Entergy Veto

submitted by Alexandra MacLean, Assistant to the Speaker

Statement from Speaker Symington and President Pro Tem Peter Shumlin on Governor Douglas’ Veto of the Decommissioning Bill By vetoing the decommissioning bill, S. 373, today, Governor Douglas chose to stand in the way of protecting Vermonters from the potential financial risk if the Entergy Corporation sells Vermont Yankee to a highly leveraged company.  With this veto Governor Douglas showed clearly that his allegiance is to a multi-billion dollar out of state corporation instead of to Vermonters.   

When Entergy bought Vermont Yankee in 2002, they agreed to accept the responsibility for the  decommissioning fund.  They are now restructuring and transferring the plant to a below-investment grade corporate shell - a move that will distance them from that responsibility.   

“Entergy is a well-run, well-capitalized corporation,” said President Pro Tem Peter Shumlin.  “If Entergy were not transferring the plant to a new, debt-ridden company, we would not need this bill.”

S.373 would have held Entergy to the promise it made upon acquisition of the plant by requiring the corporation to provide enough assets and financial guarantees to pay for restoration of the site upon the closing of Vermont Yankee.  If the decommissioning fund is inadequate at the time of sale, additional funds, a letter of credit or other guarantee from Entergy will be required.  If the fund is adequate, nothing further will be required. 

Regardless of whether the corporation that owns the plant is financially viable, S. 373 ensures that Vermonters will not be left with the clean up costs after Vermont Yankee shuts down.

“The Governor had a choice between protecting a multi-billion dollar Louisiana corporation or protecting Vermonters,” said Speaker Symington.  “By vetoing this bill, Governor Douglas chose the corporation over Vermonters.”

Letter Criticizes Douglas Veto

(The following is a Letter to the Editor)

Governor’s Veto of Nuclear Decommissioning Fund Naïve

Governor Douglas has vetoed S.373 the bill that mandated that Entergy put another $400,000,000 into the Vermont Yankee Decommissioning Fund.  Douglas stated that “It is naïve to think this cost will not be passed on to the consumer sometime in the future.” He is absolutely right and that is exactly why he should have signed the bill.

That might sound like a contradiction, but here is why it is not. Vermont residents and businesses are only around 50% of Entergy’s Vermont Yankee customers. If the cost of this decommissioning fund increase is passed on to the customers, Vermonters will get help from these out of state rate payers to foot the bill. If, on the other hand, the ownership of Vermont Yankee is allowed to pass to a limited liability company and to avoid bringing up the fund to the level shown to be necessary at other similar, recent decommissioning of nuclear power plants before its license expires, Vermonters will be footing the entire bill.

It is naïve to think that if Entergy is unwilling to cover the costs of decommissioning now while it is earning a profit from its operations it would suddenly be willing to come up with the funds when the plant is closed and now longer providing an income. The governor and any Vermont business owner should have been able to see that paying something more now would be better than paying much more in the near future.

It was the legislators of the Vermont Senate and House who got it right. Now they should come forward to make it right again. Come together to override this veto!

Betsy Eldredge, Secretary
SIERRA CLUB of the Upper Valley
(802) 885-4826
email: DRR@Dartmouth.edu