Unanswered questions
Toolbox
By Susan Smallheer STAFF WRITER - Published: November 27, 2009
MONTPELIER – The Public Service Board has dozens more questions for Entergy Corp. and the Department of Public Service about the proposed spin-off of the Vermont Yankee nuclear plant and five other reactors into a new company.
The board has been reviewing the proposed creation of Enexus for close to two years, but the worldwide financial crisis, which started about a year ago, has repeatedly delayed the project.
In October, Entergy announced changes it had made in the financial underpinnings of the deal, in order to win the support of Vermont regulators, as well as regulators in New York state, where two other Entergy-owned reactors are located.
"Full and candid responses to these information requests will assist the Board in fulfilling its independent statutory responsibilities under Title 30," the board wrote to Entergy on Nov. 20. The board said it also needs the additional information to determine whether a new round of hearings needs to be held.
On Oct. 8, Entergy filed with the Public Service Board a memorandum of understanding between the company and the Department of Public Service. Proposed changes in that document essentially won the department's support of the spin-off.
The new agreement has attracted the attention of the Vermont Legislature, and some legislative committees plan on holding hearings on the proposed changes.
The board noted that since technical hearings in the Enexus case ended in July 2008, "there have been substantial changes in the economic and financial environment, as well as in the market for independent power."
"In addition, the petitioners have made significant changes to the proposed transactions since the technical hearing," the Nov. 20 memorandum stated.
The board also had a specific request of the department: "Please also address concerns of the public about the advisability of transferring an aging Vermont nuclear plant to a company with a 'junk bond' credit rating that seeks a 20-year extension of the CPG (certificate of public good)," the board asked the department, which acts as the public advocate before the board.
Sarah Hofmann, director of public advocacy for the Department of Public Service, said Wednesday that the board would have its answers by next week.
Alex Schott, spokesman for Entergy in New Orleans, said that the company would comply with the requests.
"We continue to work through the process in Vermont and are responding to information requests. At this point, we cannot predict the timing of a Vermont Public Service Board decision," Schott wrote in an e-mail Wednesday.
susan.smallheer@rutlandherald.com
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