Friday, October 17, 2014

Decommissioning Estimate Released Today

Site Assessment

Vermont Yankee released its decommissioning site assessment today.  It released the information earlier than any other plant has done so. It is a clear and complete report.

The faqs are good and succinct


 The short version from the FAQs (emphasis added by blogger)


The case that ENVY expects to file with the NRC is a SAFSTOR case with a total cost of $1,242 million over the period 2014 to 2076.

In this case, the specific cost components are License Termination $817 million, Spent Fuel Management $368 million and Site Restoration $57 million.

In this case, the spending for preparations (to get into dormancy) is $419 million over the period 2014 to 2020.

Consistent with the Settlement Agreement with Vermont, ENVY will also provide estimates of prompt decommissioning which range from $1.3 to $1.6 billion. (There is less waste to dispose of in the SAFSTOR scenario because the radioactivity decays over time.)

As of September 30, 2014, market value of the Vermont Yankee Nuclear Power Station’s Nuclear Decommissioning Trust accounts was $642.6 million. That represents a doubling of the fund value since Entergy purchased the plant in 2002.

It is recognized that there will be fluctuations in the fund value over time, but we watch it closely to ensure the fund remains sufficient to meet federal regulations.

Looking forward

I note that over $400 million will be spent between now and 2020.  I am happy to see looks like a softer landing for more of the current employees. However, by its nature, I believe much of the work will have to be contracted out. At any rate, expect the shouting to begin. Though Entergy never said so, Governor Shumlin said that complete decommissioning could begin (or maybe he said WOULD begin) as early as 2020.  I suspect he will do some name-calling in the near future.  I hope not, but it IS an election year....

Entergy Earnings

Entergy also announced an impairment charge against earnings in this PR Newswire press release this morning.  A quote from that press release:

 With VY nearing shutdown, and as a result of the new cost estimate for decommissioning, Entergy increased the decommissioning cost liability and recorded a corresponding impairment charge of approximately $0.37 per share, which will be reflected as a special item in third quarter 2014 results.

1 comment:

Anonymous said...

No doubt name-calling will be the order of the day for Scumlin and his toadies. But at least it will be the end of the sickening, faux kissy-face he's been playing and Entergy and VY the last few months. I'd much prefer they stick it to him and let him squeal.