| Last year I issued two white papers regarding my concerns with Vermont Yankee's Decommissioning Fund and the Fund Gap between the monies available and the actual cost of decommissioning.
Now today, the status of Entergy's Vermont Yankee Decommissioning Fund since the Wall Street Meltdown were finally released. As of September 30, 2008, ENVY's Decommissioning Fund contains $397,035,937, which is the 2006 level of an already paltry fund.
According to the Vermont State Auditor, the Fund had been reported by DPS as delineated below:
Date Amount in the Trust Fund
July 2002 $304,000,000
Dec 31, 2003 $352,718,739
Dec 31, 2004 $372,800,000
Sept 30, 2005 $380,078,031
March 31, 2006 $391,882,501
Sept 30, 2006 $402,410,980
Dec 31, 2006 $416,715,821
Dec. 31, 2007 $439,570,000
June 30, 2008 $413,200,000 (est)
September 30, 2008 $397,035,937
DPS earlier reported that the funds were invested in: Delaware Qualified Fund, Mellon Qualified Fund, Duff & Phelps Qualified Fund, Mellon NQ, Mellon MCF -NQ and Delaware NQ.
One of my concerns was that DPS reported that the rate of return from July 2002 into 2007 was about 6.75%. In its analysis Entergy applied a growth rate of 5.54%. [Please note that the NRC uses 5% as its cap. I'm still wondering how that one gets by the NRC!]
Using the 5.54% growth rate noted above applied to the 12/31/2007 market valuation, the Fund would have been expected to be at approximately $464 million at Dec. 31, 2008.
It is sadly short of that figure. The actual letter from attorneys is below the fold. More to come from me tomorrow and Friday. |
October 7,2008
Sarah D. Hofmann, Esq.
Vennont Department of Public Service
Drawer 20, 112 State Street
Montpelier, VT 05620-2601
SUBJ: Decommissioning Trust Fund for the Vennont Yankee Nuclear Power Station (the "Fund")
Dear Sarah:
On behalf of Entergy Nuclear Vermont Yankee, LLC, and Entergy Nuclear Operations, Inc.
(together, "Entergy VY"), this letter responds to the Department of Public Service's (the
"Department") request for information dated September 26, 2008 (the "Information Request"),
pursuant to 30 V.S.A. 5 206, asking Entergy VY to provide "the total market value figure for the
Vermont Yankee Decommissioning Trust Fund as of close of business on September 18,2008
and September 25, 2008."
Following our receipt of that request, I left you a voicemail message in which I informed you
that Entergy VY does not have information that would enable it to calculate the total market
value of the Fund on those two dates without requesting and incurring the expense for a special
valuation.' I also informed you that Entergy VY receives reports stating the total market-value
figure for the Fund monthly, that the closest date to the dates requested would be September 30,
2008, and that Entergy VY would not have the information for that date until several business
days following September 30, 2008. You left me a voicemail message indicating that the
Department would accept, as responsive to the Information Request, the total market-value
figure for the Fund as of September 30,2008.
Entergy VY accordingly responds to the Information Request as follows: As of September 30,
2008, the market value for the Fund was $397,035,937.
Let us know if the Department requires information additional to the information from Entergy
VY provided by this letter.
Very truly yours,
DOWNS RACHLIN MARTIN PLLC
Attorneys for Entergy Vermont Yankee, LLC.
PS - I will not be responding to questions tonight, not because I do not want to, but because as a Burlington Public Works Commissioner, I will be in a meeting all evening. More to come from me tomorrow and Friday. |
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