23 July 2002 – Entergy Corporation announced today that it has reached agreements in principle with the owners of the Vermont Yankee (VY) nuclear plant that will allow Entergy to move forward and purchase the plant prior to July 31 when the purchase agreement terminates.
Under the agreements, non-Vermont members of the consortium representing 45 per cent ownership of the plant will restore the substance of the original risk/reward allocation in the agreement by assigning 100 per cent of their shares of any excess decommissioning funds to Entergy.
Earlier this month, following an order by the Public Service Board of Vermont that changed the fundamental economics of the original agreement, Entergy notified VY’s owners that it was unwilling to close the transaction unless the substance of the original commercial terms are restored prior to July 31, 2002.
“All of us at Entergy appreciate the creativity and decisiveness of VY’s owners to preserve a transaction that was negotiated in good faith to be in the best interests of all parties,” said Jerry Yelverton, president and CEO of Entergy Nuclear. “When we raised our concerns about the change in the terms of our deal, the owners quickly responded to fix the problem, clearing the way for us to close in accordance with our original timeline.
“When the additional agreements are in place, we will be ready to close the transaction. We look forward to providing the power consumers of Vermont and New England with safe, low cost and emission-free power generation from Vermont Yankee.”
Previously, the state Public Service Board Orders regarding distribution of any excess decommissioning funds materially changed the terms of the original Memorandum of Understanding agreed to by Entergy, the sellers of Vermont Yankee, and the Department of Public Service. The MOU stipulated that if the plant was decommissioned prior to 2022, Entergy would retain any excess funds, and if decommissioned after 2022, Entergy would share excess funds equally with the seller.
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 MW of generating capacity, nearly $10bn 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.