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Leas: Entergy’s case against Vermont is seriously flawed

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bananas Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-04-11 05:58 AM
Original message
Leas: Entergy’s case against Vermont is seriously flawed
http://vtdigger.org/2011/05/03/leas-entergys-case-against-vermont-is-seriously-flawed/

Leas: Entergy’s case against Vermont is seriously flawed

by Opinion | May 3, 2011
6 Responses Email Email Print Print

Editor’s note: This op-ed is by James Leas, an attorney in Burlington. This is the first in a series of commentaries about Entergy’s case against Vermont Yankee.

Implementing a two-pronged attack, Entergy is combining court action with a massive public relations campaign to keep its Vermont Yankee nuclear plant operating after March 21, 2012. The effort to win over public support — or at least prevent a landslide of opposition to its suit in Vermont — is an essential part of Entergy’s legal strategy. The public relations campaign is especially important in view of Entergy’s case against Vermont state officials being so incredibly weak.

<snip>

One day after filing its suit Entergy published full page ads in newspapers around the state with a folksy sounding letter to Vermonters signed by J. Wayne Leonard, Entergy’s Chairman and CEO.

<snip>

The agreement Leonard says that Entergy entered into with the state is called a “Memorandum of Understanding” (MOU). Along with three Vermont utilities (GMP, CVPS, and VYNPC) and the Vermont Department of Public Service (DPS) two Entergy-owned companies (called ENVY and ENO) that now own and operate Vermont Yankee signed the MOU on March 4, 2002. VYNPC is the Vermont Yankee Nuclear Power Corporation, the company that previously owned and operated the plant and sold the plant to Entergy. The DPS is an executive branch agency that supported Entergy’s offer to buy Vermont Yankee based on Entergy signing the MOU. Also mentioned in the MOU is the VYNPS which is the Vermont Yankee Nuclear Power Station. “The Board” is the Vermont Public Service Board. Only one paragraph of the MOU is relevant to permission for operation of Vermont Yankee after 2012. Here is the full text of this paragraph:

12. Board Approval of Operating License Renewal: The signatories to this MOU agree that any order issued by the Board granting approval of the sale of VYNPS to ENVY and any Certificate of Public Good (“CPG”) issued by the Board to ENVY and ENO will authorize operation of the VYNPS only until March 21,2012 and thereafter will authorize ENVY and ENO only to decommission the VYNPS. Any such Board order approving the sale shall be so conditioned, and any Board order issuing a CPG to ENVY and ENO shall provide that operation of VYNPS beyond March 21,2012 shall be allowed only if application for renewal of authority under the CPG to operate the VYNPS is made and granted. Each of VYNPC, CVPS, GMP, ENVY and ENO expressly and irrevocably agrees: (a) that the Board has jurisdiction under current law to grant or deny approval of operation of the VYNPS beyond March 21,2012 and (b) to waive any claim each may have that federal law preempts the jurisdiction of the Board to take the actions and impose the conditions agreed upon in this paragraph to renew, amend or extend the ENVY CPG and ENO CPG to allow operation of the VYNPS after March 21,2012, or to, decline to so renew, amend or extend.

The Vermont General Assembly was not a party to the agreement. Nothing in this paragraph says that democratic decision making is barred in Vermont or that decisions must only be made by “an independent expert body.”

<snip>


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nonperson Donating Member (901 posts) Send PM | Profile | Ignore Wed May-04-11 06:10 AM
Response to Original message
1. "The NRC’s action came after"
"The NRC’s action came after a thorough and exhaustive five-year safety and environmental review of the plant."

Same exhaustive safety and environmental review conducted at Chernobyl, Three Mile Island, and Fukushima no doubt.

Nuke plants commissioned for forty years are now magically commissioned for sixty years.

So the nuke energy industry has their lobbyists run to Washington to influence the people they pay off into denying Vermont their rights as a state to make their own decisions regarding public safety.
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nonperson Donating Member (901 posts) Send PM | Profile | Ignore Wed May-04-11 06:24 AM
Response to Reply #1
2. Entergy from LOUISIANA???
Does Vermont really want a Louisiana energy company dictating to their state the Louisiana version of the public good? Has everyone forgotten what the Louisiana version of public good is re the BP spill or other massive polluters in the Gulf like the plastics industry? Now Entergy, out of sheer greed, wants to bring Louisiana's version of "public good" to Vermont.

I like the first response to the article from Tom Buchanan:

http://vtdigger.org/2011/05/03/leas-entergys-case-against-vermont-is-seriously-flawed/#comment-12158

"Good overview. While paragraph 12 (quoted above) is the most important part of the document relevant to the approvals needed, it is supported by paragraph 16(1), which recognizes disputes will arise from time to time, and establishes a mechanism for resolving those disputes. In this case, both Entergy and the other signatories agreed that any dispute would be handled under Vermont law, by the Public Service Board.

The terms of paragraph 12 are in dispute, and Entergy should have first gone to the PSB for resolution. Indeed, the federal courts should immediately send Entergy back to the state level, and should deny the preliminary injunction because the “urgency” claimed by Entergy, was created by Entergy’s failure to pursue resolution at the state level in a timely manner.

It may be that the PSB decides that the intent of the Parties in 2002 was to recognize the potential for the kind of legislative action we see now, in which case the authority of Act 160 would stand, and the matter should be closed. Or, the PSB might decide that the Parties could not have anticipated such heavy-handed legislative action, and that paragraph 12 doesn’t apply to the situation at hand, which would then open the dispute to other legal avenues. In any event, Entergy should have begun their argument regarding state authority to grant or deny a continuing CPG at the Public Service Board, as they agreed to do in 2002. It is fully inappropriate to skip that step, and then claim that the PSB process is somehow tainted, as Entergy appears to be doing now.

The second part of the Entergy complaint revolves around the commerce clause and challenges to FERC authority, but those elements should wait until there is an actual decision from the Board. At this juncture, the requirement for a PPA has been argued by the legislature and the Department of Public Service (and other Parties before the Board), but the Board has not issued any decision, and thus denial of the CPG is not now be based on a commerce or FERC conflict.

Paragraph 16(1) of the 2002 MOU is a common element of many agreements and reads as follows:

“16. Additional Provisions:

1. This Memorandum of Understanding is governed by Vermont law and any disputes under this Memorandum of Understanding shall be decided by the Board.”"


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