Yesterday the Vermont Electric Co-op sent a clear signal to Entergy Vermont Yankee. They voted 9-1 against signing a 20 year power purchase agreement with the aging plant. One VEC board member described his vote as follows:
“We need to lock in with a credible supplier,” he said. “We need to deal with a company that has the trust and support of the majority of our members. Entergy isn’t that company.”
Entergy had fired off its PR gun a little early on March 30th with a press release that was trumpeted by local online cheerleaders of the plant.
Entergy Corporation today announced Entergy Nuclear Vermont Yankee, LLC has completed negotiations on a 20-year agreement to sell power from the Vermont Yankee nuclear plant to customers of Vermont Electric Cooperative, Inc., the third-largest electric distribution utility in Vermont.
This announcement was quickly shot down by the VEC Chairman, and yesterday’s vote shows the deal had little support. Chalk it up to an ill timed PR move or an awkward attempt to bulldoze the VEC board or…it could be a move sooo sly only a few chosen souls even understand the sheer cleverness. You see according to YesVY blog (which understandably claims no inside knowledge) it was never meant to be about a VEC power deal at all!!
Entergy was sending secret signals to others.
It’s a little long but here put on these special glasses and you will see the message.
I think Entergy is signalling. Signalling can be sort of fancy word for advertising. However, advertising is often comparatively simple: "Strawberries now available at $2.50 a quart." Signalling can be much subtler. For example, a potential employee shows his dedication to his career by going to night school, therefore "signalling" to the potential employer that he will be a very good employee. In my opinion, this press release signals: Entergy Vermont Yankee intends to be open for business after March 2012, and they are willing to give very good power purchase agreement rates.
[…] Similarly, I think that the question of why Entergy sent this press release at this time cannot be answered by looking at Entergy's relationship with VEC. This press release is a signal to a wider market. Also, this is an upbeat way of signalling: we're ready to sell power to a buyer! If the VEC board turns down the agreement later this month, Entergy's signal would not be as effective.
