By Eileen O'Grady
HOUSTON, April 18 (Reuters) - Entergy Corp filed a federal lawsuit on Monday to prevent the state of Vermont from forcing the Vermont Yankee nuclear power plant to shut next year, the company said.
Richard Smith, Entergy's president of wholesale commodities, said Entergy Nuclear Vermont Yankee LLC and Entergy Nuclear Operations 'had no other choice' than to file suit in U.S. District Court for the District of Vermont to try to resolve a conflict between elected state officials and a federal agency's regulatory authority.
The Nuclear Regulatory Commission last month renewed Vermont Yankee's operating license to extend the plant's operation through March 21, 2032, after a five-year review process. But state officials want the plant to shut at the end of its original operating license in March 2012.
'It is clear our disagreement with the state of Vermont on the scope of its authority over Vermont Yankee cannot be resolved between the two parties,' Smith said on a call.
Vermont Governor Peter Shumlin told reporters Entergy's legal move is an attempt to 'rewrite history, breaking its own promises and its own support of Vermont law.'
Entergy objects to a 2006 law that it says took the fate of the 605-megawatt nuclear reactor away from the Vermont Public Service Board and put its future into the hands of elected officials.
'This is not what we signed up for in 2002,' when Entergy purchased Vermont Yankee, Smith said.
The New Orleans-based company said its case will focus on constitutional issues that limit state authority over the nuclear industry.
Vermont Attorney General William Sorrell said Entergy wants to have it 'both ways,' making agreements with the state when it wanted to purchase the plant, but objecting later to legislation that gave Vermont a measure of authority not seen in any other state over nuclear operations.
Vermont officials said they want the reactor to shut in 2012 and remain shut through likely court appeals which may take years.
Entergy said Vermont Yankee is important to the New England regional grid, emits no greenhouse gas and employs 650 workers.
Shumlin said the state's case will not include any safety-related issues raised at Vermont Yankee, noting that nuclear safety falls under NRC's jurisdiction.
The governor said NRC officials indicated in a meeting with Vermont officials that the agency does not intend to join the suit.
Officials from the NRC and the Nuclear Energy Institute, a trade group, declined to comment on the suit on Monday.
Utilities are working to reduce reliance on Vermont Yankee output after 2012 and Shumlin promised residents will have competitive power prices after 2012, citing a recent power purchase pact negotiated with Hydro-Quebec.
'That's a great example of a long-term power purchase agreement Vermont can enter instead of running an aging, leaking power plant,' Shumlin said.
Entergy shares dropped 55 cents on Monday, or less than 1 percent, to close at $65.97 on the New York Stock Exchange. The S&P 500 stock index was down 1 percent.
(Editing by David Gregorio)
((eileen.ogrady@thomsonreuters.com; +1 713 210 8522; Reuters Messaging: eileen.ogrady.reuters.com@reuters.net)) Keywords: UTILITIES ENTERGY/VERMONTYANKEE (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
HOUSTON, April 18 (Reuters) - Entergy Corp filed a federal lawsuit on Monday to prevent the state of Vermont from forcing the Vermont Yankee nuclear power plant to shut next year, the company said.
Richard Smith, Entergy's president of wholesale commodities, said Entergy Nuclear Vermont Yankee LLC and Entergy Nuclear Operations 'had no other choice' than to file suit in U.S. District Court for the District of Vermont to try to resolve a conflict between elected state officials and a federal agency's regulatory authority.
The Nuclear Regulatory Commission last month renewed Vermont Yankee's operating license to extend the plant's operation through March 21, 2032, after a five-year review process. But state officials want the plant to shut at the end of its original operating license in March 2012.
'It is clear our disagreement with the state of Vermont on the scope of its authority over Vermont Yankee cannot be resolved between the two parties,' Smith said on a call.
Vermont Governor Peter Shumlin told reporters Entergy's legal move is an attempt to 'rewrite history, breaking its own promises and its own support of Vermont law.'
Entergy objects to a 2006 law that it says took the fate of the 605-megawatt nuclear reactor away from the Vermont Public Service Board and put its future into the hands of elected officials.
'This is not what we signed up for in 2002,' when Entergy purchased Vermont Yankee, Smith said.
The New Orleans-based company said its case will focus on constitutional issues that limit state authority over the nuclear industry.
Vermont Attorney General William Sorrell said Entergy wants to have it 'both ways,' making agreements with the state when it wanted to purchase the plant, but objecting later to legislation that gave Vermont a measure of authority not seen in any other state over nuclear operations.
Vermont officials said they want the reactor to shut in 2012 and remain shut through likely court appeals which may take years.
Entergy said Vermont Yankee is important to the New England regional grid, emits no greenhouse gas and employs 650 workers.
Shumlin said the state's case will not include any safety-related issues raised at Vermont Yankee, noting that nuclear safety falls under NRC's jurisdiction.
The governor said NRC officials indicated in a meeting with Vermont officials that the agency does not intend to join the suit.
Officials from the NRC and the Nuclear Energy Institute, a trade group, declined to comment on the suit on Monday.
Utilities are working to reduce reliance on Vermont Yankee output after 2012 and Shumlin promised residents will have competitive power prices after 2012, citing a recent power purchase pact negotiated with Hydro-Quebec.
'That's a great example of a long-term power purchase agreement Vermont can enter instead of running an aging, leaking power plant,' Shumlin said.
Entergy shares dropped 55 cents on Monday, or less than 1 percent, to close at $65.97 on the New York Stock Exchange. The S&P 500 stock index was down 1 percent.
(Editing by David Gregorio)
((eileen.ogrady@thomsonreuters.com; +1 713 210 8522; Reuters Messaging: eileen.ogrady.reuters.com@reuters.net)) Keywords: UTILITIES ENTERGY/VERMONTYANKEE (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.