Entergy Corp. has placed a $65 million bet on the future of its Vermont Yankee nuclear plant.

The company announced Monday morning that its board of directors had approved the purchase of the fuel, setting the stage for Yankee's 29th refueling outage.

The company said it had told its employees Monday of the vote to approve the fabrication of the nuclear fuel and the refueling of Yankee in October.

Company officials had testified last month that the refueling project would cost upwards of $100 million, including the fuel.

“Entergy's board of directors carefully reviewed the merits of our case and the arguments put forth by all parties during the recent hearing in (U.S.) District Court when we requested a preliminary injunction against the state of Vermont taking any actions to close Vermont Yankee,” J. Wayne Leonard, Entergy's chairman and chief executive officer, in a release.

“Our board believes both the merits of the company's legal position and the record strongly support its decision to continue to trial scheduled to begin on Sept. 12,” Leonard added.

Last week, U.S. District Judge J. Garvan Murtha denied Entergy's bid for a preliminary injunction, saying that the company had not made the case that it faced ireparable harm if it didn't get the court order to keep the plant running pending the outcome of its federal preemption lawsuit against Vermont.

The Entergy decision surprised no one Monday in Vermont, ranging from Gov. Peter Shumlin to anti-nuclear activists.

“Judge Murtha made clear in his decision to deny Entergy Louisiana's request for a preliminary injunction that he didn't buy the company's argument that the injunction was a prerequisite for refueling. Today's decision by Entergy Louisiana to refuel affirms that Judge Murtha was right, and that his decision to deny the injunction was the correct one,” said Shumlin in a statement.

The decision brought a unanimous chorus from conservation groups and anti-nuclear activists that the judge had called Entergy's bluff and it was further proof that Entergy couldn't be trusted.
-
“This decision speaks volumes to the reliability of Entergy,” said former legislator-turned-anti-nuclear lobbyist Robert Stannard, who represents Citizens Awareness Network, and sat through last month's hearings in U.S. District Court.

“You simply can't believe anything they say, either on the street or in a court of law,” Stannard said.

“Once again we've witnessed a misstatement from Entergy,” he added.

Stannard and others said that Entergy's lead attorney, Kathleen Sullivan of New York City, had hammered home the necessity of the preliminary injunction to Murtha, saying that the company would likely shut down Vermont Yankee if it didn't get the preliminary injunction.

Sandra Levine, an attorney for the Conservation Law Foundation, whose organization filed a friend of the court brief in the federal preemption case, said that Entergy was making “a dubious investment.”

She noted that the NRC license was being appealed by the state's Agency of Natural Resources, as well as the New England Coalition.

“They are making an investment made with a very uncertain outcome,” she said.

“It certainly belies their claims and bullying during the hearing,” she said.

Paul Burns, executive director of the Vermont Public Interest Research Group, said that Entergy officials lied under oath about the existence of underground pipes carrying radioactive material.

“Entergy now has an infamous track record in Vermont of saying one thing and doing another. Recall that the state is only involved in this litigation because Entergy broke its promise to abide by state re-licensing processes,” Burns wrote in an email.

Burns pointed to Entergy's ‘transparency' press conference at the State House days before the Senate vote in February 2010.

“Officials announced they were turning over a new leaf of openness and then promptly refused to answer questions from the media,” said Burns. “With the fuel order decision today, Entergy is making clear once again that it cannot be trusted. What Entergy officials say is often at odds with the truth. That is irresponsible. “

susan.smallheer@rutlandherald.com


Entergy and the state of Vermont are fighting over whether the plant, which is located in Vernon, Vt., will operate beyond March.

The Nuclear Regulatory Commission has issued a 20-year license extension. But the state, which claims it has jurisdiction over the plant's operation, wants it to close.

Vermont Yankee officials have said they were uncertain whether they would order $60 million worth of nuclear fuel unless they knew the plant would continue operating.