Entergy ready to back out of Vermont Yankee deal over changes

July 19, 2002 — After further evaluating the modifications the Public Service Board of Vermont has made to the allocation of risks associated with decommissioning funds, Entergy recently notified the utility owners of Vermont Yankee that it is unwilling to close the transaction unless the commercial terms it negotiated in good faith can be restored prior to July 31, 2002.

Entergy Nuclear further notified the owners that it is willing to meet “at the earliest possible time” to discuss ways that Entergy’s purchase of the plant can be concluded while preserving the original risk/reward allocation.

Entergy reminded Vermont Yankee’s owners that from the time of the plant’s auction through the end of the Board’s process, Entergy made clear that sharing in potentially excess decommissioning funds “has always been a fundamental element in the transaction.” Entergy believes that it is fundamentally inequitable for it to bear all of the downside decommissioning fund risk without the potential to share in the upside if funding levels or actual decommissioning costs turn out better than expected.

Entergy said it remained “open-minded” and welcomes suggestions from Vermont Yankee owner utilities on how Entergy can preserve the agreed-upon risk allocation provisions that it had agreed to and still go forward with the transaction prior to the expiration of the purchase agreement on July 31.

The U.S. Nuclear Regulatory Commission and all other required federal agencies have granted all approvals requested by Entergy.

The Board held 10 months of hearings before attaching the decommissioning condition to the deal. The plant is owned by Vermont Yankee Nuclear Power Corporation, a consortium of utilities led by Central Vermont Public Service and Green Mountain Power.

Entergy Nuclear, the nuclear businesses of Entergy Corporation, is headquartered in Jackson, Miss. Entergy, a global energy company headquartered in New Orleans, is the third largest power generator in the nation with more than 30,000 megawatts of generating capacity, nearly $10 billion in revenue and almost 2.6 million customers.

Entergy Nuclear is the second largest and fastest growing operator of nuclear power plants in the nation. It operates five reactors at four locations in Arkansas, Mississippi and Louisiana under regulatory jurisdictions and four reactors at three sites in Massachusetts and New York. Entergy Nuclear also is the nation’s largest provider of license renewal and decommissioning services to the nuclear power industry.

Entergy Nuclear’s online address is https://entergy-nuclear.com.

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