By CAROLYN LORIé
Reformer Staff

Saturday, May 21, 2005 - BRATTLEBORO -- Calling the current bill on dry cask storage "totally unacceptable," and threatening to shut the plant down early, officials at Vermont Yankee said they will oppose passage of the bill as it makes it way through the Vermont Legislature.

Approved by the Committee on Natural Resources and Energy, the bill includes an annual $4 million payment from plant owner Entergy to the state in exchange for permission to store high-level nuclear waste in concrete containers known as dry casks.

Annual payments will be required as long as the spent fuel is stored at the Vernon site, even after the plant is shut down.

Rob Williams, spokesman for Vermont Yankee, said the charge was "totally unacceptable and unfair."

"It's unfair on all levels," he added.

According to Williams, the bill could jeopardize the continued operation of the nuclear reactor.

"This kind of charge wasn't anticipated [when the plant was purchased in 2002], so it wasn't part of the business plan," said Williams. "If it becomes uneconomical to run [the plant], it will be shut down, absolutely."

The reactor supplies the state with one-third of its electricity and employs over 500 people. That number swells to almost 1,000 during refueling outages, which occur every 18 months.

It is currently licensed by the Nuclear Regulatory Commission to run until 2012, but plant officials have stated that they intend to apply for a license extension. If it is granted, the plant could operate until 2032.

Concerns about premature shutdown of the plant had some criticizing the bill, including members of the Vermont Energy Partnership -- a recently formed group that includes representatives from business, labor and community organizations.

"This is a money grab, pure and simple," said member Vicky Tebbetts, in a press release. Tebbetts is vice president of communications and government relations for the Vermont Chamber of Commerce.

"Rather than making sure that our lowest cost and most reliable power stays on line, or finding comprehensive solutions to our significant energy challenges, legislators are enacting a totally arbitrary tax," she said.

Local representatives on the Natural Resources and Energy Committee, however, said that finding solutions for the state's energy future was exactly what they had in mind when crafting the legislation.

"What we've done with this bill is address short-term concerns with long-term goals and that is not easy to do," said Rep. Sarah Edwards, P-Brattleboro.

The bill calls for the establishment of a renewable energy fund that will receive the payments from Entergy. It will be administered by the Department of Public Service.

Given the federal government's failure to open a national repository for high-level nuclear waste, Edwards said the committee had to consider the possibility of the spent fuel remaining in Vernon indefinitely.

Though the bill calls for a minimum annual payment of $4 million -- that figure will increase roughly with the rate of inflation -- it allows Vermont Yankee officials to appeal to the Vermont Public Service Board for redress if it proves to be a financial hardship.

"That's a huge thing," said Edwards, of the possibility for changing the yearly charge.

Plant officials will not release financial figures, claiming financial propriety. However, estimates based on 2002 data from the sale show the company stands to make an additional $40 million to $50 million a year, if its bid to increase power by 20 percent is approved.

The "uprate" application with the Nuclear Regulatory Commission is under consideration.

Local anti-nuclear groups lauded the bill, saying it reflected the wishes of many Windham County residents.

"The Natural Resources and Energy Committee has done a good job," said Ed Anthes of Nuclear Free Vermont, in an e-mail to the Reformer. "There is recognition that the burden created by [Vermont Yankee's] nuclear waste will be borne by future generations long after electric production has stopped."

The bill is now under consideration by the House Ways and Means Committee. Before going to the floor for a full vote, it must also be passed by the Appropriations Committee.

Finally passage will require approval by the Senate and Gov. James Douglas.

At that point, Vermont Yankee officials can apply to the Vermont Public Service Board for a certificate of public good. The quasi-judicial process can take up to one year.

According to plant officials, in order to keep the plant running without interruption, construction on the dry casks must begin by spring 2006.