BREAKING: Vermont Yankee to close its doors in 2014

The Wall Street Journal:

Entergy Corporation (NYSE: ETR) today said it plans to close and decommission its Vermont Yankee Nuclear Power Station in Vernon, Vt. The station is expected to cease power production after its current fuel cycle and move to safe shutdown in the fourth quarter of 2014.

More to come, no doubt.

UPDATE: From PR Newswire (aka, the news-flaks at Entergy)

“This was an agonizing decision and an extremely tough call for us,” said Leo Denault, Entergy’s chairman and chief executive officer. “Vermont Yankee has an immensely talented, dedicated and loyal workforce, and a solid base of support among many in the community. We recognize that closing the plant on this schedule was not the outcome they had hoped for, but we have reluctantly concluded that it is the appropriate action for us to take under the circumstances.”

The decision to close Vermont Yankee in 2014 was based on a number of financial factors, including:

  • A natural gas market that has undergone a transformational shift in supply due to the impacts of shale gas, resulting in sustained low natural gas prices and wholesale energy prices.
  • A high cost structure for this single unit plant. Since 2002, the company has invested more than $400 million in the safe and reliable operation of the facility. In addition, the financial impact of cumulative regulation is especially challenging to a small plant in these market conditions.
  • Wholesale market design flaws that continue to result in artificially low energy and capacity prices in the region, and do not provide adequate compensation to merchant nuclear plants for the fuel diversity benefits they provide.

Making the decision now and operating through the fourth quarter of 2014 allows time to duly and properly plan for a safe and orderly shutdown and prepare filings with the NRC regarding shutdown and decommissioning. Entergy will establish a decommissioning planning organization responsible for planning and executing the safe and efficient decommissioning of the facility. Once the plant is shut down, workers will de-fuel the reactor and place the plant into SAFSTOR, a process whereby a nuclear facility is placed and maintained in a condition that allows it to be safely secured, monitored and stored.”

Entergy plans to recognize an after-tax impairment charge of approximately $181 million in the third quarter of 2013 related to the decision to shut down the plant at the end of this current operating cycle. In addition to this initial charge, Entergy expects to recognize charges totaling approximately $55 to $60 million associated with future severance and employee retention costs through the end of next year. These charges will be classified as special items, and therefore, excluded from operational results.

10 thoughts on “BREAKING: Vermont Yankee to close its doors in 2014

  1. Doesn’t it figure Entergy has to grind it out for one last cycle.Oh and how about that decommissioning fund doing?

  2. for a very loong time. I was certain it would happen pretty soon — just not this soon. I changed my handle on Topix to “Watch That Door” in honor of what looked their soon-to-be final demise. Like an incorrigible jd or stubborn spoiled child I was wondering when they would reach the end of themselves & run out of the steam to continue their fools errand & their ridiculous charade, however it’s been clear they have been in final throes for a while.

    The coal kept getting poured on seemingly from an invisible evil hand.

    With decom, fortunately most of the employees who want to can stay.

    Bring on the champagne!

    Found this lone heading on VPR:

    BREAKING: Entergy Announces Vermont Yankee To Close. Follow VPR for developments.



    http://www.vpr.net/

  3. extended press release

    Entergy to Close, Decommission Vermont Yankee

    Decision driven by sustained low power prices, high cost structure and wholesale electricity market design flaws for Vermont Yankee plant

    Focus to remain on safety during remaining operation and after shutdown[added emphasis ]

    http://www.prnewswire.com/news

  4. Breaking: Entergy to close, decommision Vermont Yankee

    Reformer Staff

    Posted:   08/27/2013 09:04:47 AM EDT | Updated:   40 min. ago


    BRATTLEBORO — Entergy Corporation, the owners of Vermont Yankee Nuclear plant in Vernon, on Tuesday morning announced plans to close and decommission the power station following its current fuel cycle.

    In a release Entergy stated the decision was “driven by sustained low power prices, high cost structure and wholesale electricity market design flaws for Vermont Yankee plant.”

    http://www.reformer.com/ci_239

    Probably a blurb from corporate.

Comments are closed.