Showing posts with label CPG. Show all posts
Showing posts with label CPG. Show all posts

Wednesday, April 16, 2014

The Public Service Board Rewrites History

Pressing Control-H?
A petulant Board says Entergy is not a fair partner.

In granting the Certificate of Public Good (CPG) for Vermont Yankee to operate for a final year, the Public Service Board (PSB) stressed that Entergy had not been a "fair partner" to Vermont.  I considered the Board's assertions misleading and petulant.

My recent post on this subject was PSB and the Certificate: Powerless and Petulant. I ended that post with a question: "Well, did the Board have good reason to believe Entergy was not a fair partner?  Or were they just being petulant, as I claim?"  In this post, I begin to answer that question.

Let's start with the Board's rewrite of history.

As usual, here's a link to the Board's order approving the Vermont Yankee CPG.  http://psb.vermont.gov/sites/psb/files/orders/2014/2014-03/7862%20Final%20Order.pdf 

Rewriting History


The Board is made up of lawyers who were not under oath ("the whole truth") on a witness stand.  They were writing an opinion. Without an oath to tell the truth and the whole truth, they could omit important history from their opinion.  And they did.

If you asked an average Vermonter about Vermont Yankee's history, he would probably say something like: "Well, the legislature voted against the plant but then that vote was overturned by the court."

The PSB chose to forget this part of the history.

What the PSB mentioned

Let's look at page 28-29 of the ruling. This is extracted from the rulings history-chronology which is a background to this order.  I will summarize a few items, quote a few items (in italics). You can read the rest if you follow the link to the ruling. 

Item 6: 2002, Board approves sale of plant to Entergy
Items 7 and 8: 2006, Board approves construction of Dry Cask Storage and Power Uprate
Item 9: 2011, Entergy receives a license extension from the Nuclear Regulatory Commission.
10. On March 3, 2008, Entergy VY filed a petition with the Board seeking authority to continue operation of the VY Station for an additional 20 years through March 21, 2032. Docket 7440, Petition of 3/3/08 at 2.55
11. On January 19, 2012, the United States District Court for the District of Vermont issued a decision holding that provisions of Act 160, codified at 30 V.S.A. § 248(e)(2), were preempted by the federal Atomic Energy Act, and enjoined the enforcement of these provisions. Entergy Nuclear Vermont Yankee, LLC v. Shumlin, 838 F. Supp. 2d 183, 243 (D. Vt. 2012),

What the PSB forgot to mention

Did you notice anything missing? The legislature passed Act 160 in 2006 requiring the legislature to allow the PSB to issue a CPG.  The Board didn't mention that.

Act 160 was a clear change to the contract that Entergy signed when they bought the plant. That contract said that the PSB had to consider whether the plant deserved a CPG.  The original contract said nothing about the legislature.  For information on this, I recommend John McClaughry's post: Can Entergy Trust the State?

The legislature took over the decision about issuing a CPG to the plant (by passing Act 160 in 2006).   The legislature discussed, at great length, the plant's nuclear safety. However, nuclear safety is a matter of federal jurisdiction, and the legislature knew this. The legislature used what Cavan Stone calls the Control-H defense. Basically, the legislature decided: "Let's use another word for safety."  We will hit Control-H and we will change that word.  See Cavan Stone's guest post The State and the Control-H Defense.

Having attempted to use other words for "safety," the Vermont Senate held a vote in 2010. This vote denied a CPG to  Vermont Yankee-- by refusing to let the PSB rule on a CPG.  Essentially, this vote ordered the plant to shut down in 2012.

Entergy then sued the state,  because the legislature had acted on the basis of nuclear safety. It is a federal prerogative to regulate nuclear safety. Entergy won that lawsuit. The state appealed, and Entergy won that appeal. This was embarrassing for the legislature, and maybe embarrassing for the PSB.

What the PSB was embarrassed to mention

I can read what the PSB wrote, but why they wrote it is forever a mystery.  Here's my opinion.
Governor Peter Shumlin
Led the Senate to vote against VY
(before he was Governor)

Neither the 2006 law nor the 2010 vote are mentioned in the PSB history.  Why not?  Is it because these show that the state of Vermont was not being a "fair partner"?  Is it perhaps because the legislature took the PSB's power away from it?  The legislature said: "You can't release your findings, PSB,  unless we legislators allow you to do so." To write about this, the PSB would have to admit another example of being powerless.  Was that the reason they didn't mention the vote?  Or was it that Entergy won the lawsuits, hands-down, and the PSB is basically lawyers who ended up on the wrong side?

Was the PSB just plain embarrassed at the whole history?

Who knows?  As I say, the PSB didn't write this opinion under an oath to tell the whole truth, so they wrote what they wanted to write. They left out the part of the history that most Vermonters would mention if asked about the history of Vermont Yankee.

I thought I would mention that history.

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Note: I have plans for more posts about the PSB ruling.

Saturday, March 29, 2014

Board Issues CPG to Vermont Yankee through 2014

Public Service Board
David Coen, James Volz, John Burke
A Certificate while pouting

The Public Service Board issued a Certificate of Public Good for Vermont Yankee, to run through the end of 2014.  They did it with their usual insulting snark toward Entergy. As VPR quoted the Board order:

“In its 12 years of operating in Vermont, Entergy VY has failed to comply with numerous board orders and statutory requirements,” the board said. “It has failed to follow procedural requirements that protect the integrity of board proceedings. The company has engaged in unacceptable conduct that erodes public trust and its capacity to act in good faith and to engage in fair dealing.”

The board said that if Entergy had wanted a 20 year license extension, “its track record may well have led us to find that ownership and operation would not promote the general good.”

Why did I quote VPR's quote of the order? Why didn't I quote the order directly myself? Well, frankly, because I haven't read it.  This order is 97 pages long.  Here's a link:

http://psb.vermont.gov/sites/psb/files/orders/2014/2014-03/7862%20Final%20Order.pdf

As VPR quoted Shumlin: Gov. Peter Shumlin was also pleased with the decision. “The decision provides certainty and predictability for the hard workers at the plant, over $10 million of economic development funding for the region, and lets us focus on the important work of transitioning to a future after Vermont Yankee..

Well, that is enough for now.  My snark factor is rising, along with my blood pressure.  Gosh, Governor Shumlin cares about the "hard workers at the plant." Yeah, sure!

The Board makes its own bed

I am very glad that the Board ruled in a timely fashion, and they did not attempt to shut down the plant a few months early.
Canada, with Quebec highlighted

From my point of view, the members of the board can now go ahead and enjoy their pouting about Entergy's "unacceptable conduct."  I think the main "unacceptable conduct" was Entergy winning its lawsuits.

Hopefully, this is it. No nuclear plant will ever again have to deal with the Vermont Public Service Board.  Instead, the Board can enjoy trying to control the Canadian companies who supply Vermont's gas and electricity.

Over and out, and more later.

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Update: Rod Adams blog post about visiting Vermont Yankee is now also posted at The Energy Collective. It has generated a lively comment stream, including comments from

  • opponents from the Brattleboro area, 
  • Bas Gresnigt,
  • N Nadir, expert and blogger extraordinaire,
  • and several good people who are knowledgable about nuclear energy.

Join the conversation!

https://theenergycollective.com/rodadams/360846/what-waste-vermont-yankee-beautiful-condition

Thursday, March 27, 2014

Issues and Re-Issues on the way to a CPG for Vermont Yankee

The agreement

In December, Entergy and various state agencies signed an agreement about the final year of Vermont Yankee's operation, lawsuits, payments, and several issues concerning decommissioning.

If the Public Service Board (PSB) acts in favor of this agreement, Vermont Yankee will receive a Certificate of Public Good to operate to the end of this fuel cycle.  You can read more about this agreement in Guy Page's guest post: Reasons the Public Service Board Should Grant an CPG to Vermont Yankee, and my post The Proposed Entergy Settlement is Good for Vermont.

I hope this agreement will be ratified by the Public Service Board.

But the story is always longer and more complex than it first appears.

Issues and Re-Issues

1) Issue: The Ruling and the Timing
According to Section 2 of the Settlement Agreement, there's a March 31 deadline. If the Board does not grant Vermont Yankee a CPG that approves the continued operation of the plant through the end of the fuel cycle, and in accordance with the agreement terms, the agreement may terminate at the discretion of either party.   So we can expect to hear something from the PSB by Monday, March 31.
Re-Issue: BrinksmanshipLast year, when the Board had a deadline about a CPG for emergency diesels for Vermont Yankee, they waited till the last minute to issue the ruling. They played a game of brinksmanship, as I described in A Court Case with a Deadline: The Black Start Diesels.  Are they still playing this game, or will they rule?  We will know by March 31.
2) Issue: The Decommissioning Timing
When the agreement was announced, both sides stated that they had made an agreement on what they could agree upon, but other issues were not resolved. One particular issue is that the state wants fuel moved from the fuel pools as soon as possible, but the state also wants the "real decommissioning" to begin as soon as possible.

So the state wants the fuel to be moved, but no decommissioning funds are to be expended to move it. As I noted in The Fuel Pools: Opponents Say the Darndest Things Attorney General Bill Sorrell plans to "take legal action" if Entergy removes money from the fund in order to move the fuel rods.
Re-Issue: Pre-Emption Sorrell says the state wants a "legal opportunity to be heard on those requests."  In this case, "those requests" are Vermont Yankee requests to the NRC for permission to use decommissioning funds for fuel management. Of course, this is a traditional use of decommissioning funds.   
Does the state truly want to get into a court battle about regulating nuclear operations and safety? Didn't they learn something by losing two court cases?
3) Issue: Will the State Obey the Law?
Okay, let's assume the issues above are resolved nicely.  Let's say that the PSB rules on time, and they rule in substantial agreement with the Settlement Agreement.  Let's say that Attorney General Sorrell finally understands the term "federal jurisdiction over nuclear safety" and decides not to sue if Entergy uses decommissioning funds for decommissioning.  In other words, everything is great.

The question becomes: Will it matter? Will the state live up to its side of the bargain?

Re-Issue: The Shumlin Administration Regularly Breaks Its Own Laws
Earlier this year, John McClaughry wrote comments to the PSB: "Can Entergy Trust the State?" McClaughry explained that when the state passed a law giving the legislature a vote about Vermont Yankee's continued operation, this law was a clear breach of contract with Entergy. The law was a major and one-sided modification of the Memorandum of Understanding that Entergy had signed.  
In my opinion, the state is quite happy to break any law that inconveniences it.  This is not just about Entergy.  Governor Shumlin has been eager to pass a law for single-payer health care, and the law was passed. According to that law, the government had to propose a plan for financing the system, and the plan had to be presented to the legislature by January 15, 2013. It has still not been presented.  Estimates for the cost of the single-payer system range from $1.5 billion to $2.2 billion per year.  There are about 600,000 people in Vermont.  If the cost is $1.8 billion, that is $3000 per citizen.  A rather massive payroll tax has been proposed, and of course, everyone hates that idea.   
When Governor Shumlin was recently asked: "What else can we tax (besides a payroll tax  to finance this)?" Shumlin answered: "bubble gum and lollipops."  I encourage you to read Representative Tom Koch's Op Ed on this subject: A Governor Who is Above the Law.  I
 also recommend Rob Roper's commentary: Irreconcilable Differences in Single Payer Promises.  
Note for those who do not live in Vermont: this is not about the Affordable Care Act.  This is about a single-payer system that the state of Vermont, all by itself, plans to implement.
I don't want to get deep into the weeds of this controversy, but I just want to say that if Shumlin does not obey his own laws (the ones HE wanted to pass) about his own pet project, how is he going to treat the Entergy agreement?

Soon we will know

The PSB should rule by Monday, March 31, or the Settlement Agreement may become null and void.
  • The PSB may rule for the agreement, or they may rule against it, or they may stall and not rule at all.  
  • If they do rule for the agreement, the Attorney General may still sue Entergy for moving spent fuel from the fuel pool, and using the "wrong" money to do so.  
  • If all is well with the PSB ruling and the Attorney General, the state may simply ignore their obligations under the contract.

Welcome to Vermont politics. Stay tuned.  Oh yes.  Stay tuned.

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Acknowledgment: John McClaughry and Rob Roper are officers of the Ethan Allen Institute.  I am director of the Energy Education Project which is part of that institute.

Wednesday, January 15, 2014

Can Entergy Trust the State? PSB Comments by John McClaughry

Comments to PSB, Docket 7862,  by John McClaughry

The opponents of everything nuclear, and particularly of Vermont Yankee, are out in full throat one more time to persuade this Board that “Entergy can’t be trusted," and that the Board should not issue a CPG for the final ten months of plant operation.

As a pro-nuclear former Senator with no direct personal interest in the outcome, I would like to call your attention to the fact that it is the State of Vermont that can’t be trusted, not Entergy.

The MOU of 2002 between the state and Entergy set out the rules that the two parties would observe. One was that if Entergy wanted to prolong the plant’s operation after March 22, 2012, it would return to this Board to seek a new CPG.
John McClaughry
at a dinner in his honor,  2013

But the 2005-2006 legislature completely changed the process that Entergy was required to follow to  obtain a new CPG – and it did so deliberately to inject a political roadblock into what both parties in 2002 expected to be an impartial administrative proceeding before an expert board.

In my view, Act 160 of 2006 constituted a material breach of the 2002 MOU. It allowed a majority of House and Senate to vote a death sentence for Vermont Yankee for whatever reasons, or for no reasons at all, except the political urge to pander to emotional but fact-starved anti-nuclear activists.

Following that breach of trust, Entergy had little choice but to litigate to keep the plant open, which it did, successfully.

Now the anti-nuclear forces are howling about “trust.” I agree that there is an issue of “trust,” but it runs the other way – to the faithless legislature that broke the state’s deal and thereby freed Entergy from what it had agreed to.

My recommendation is for the Board to issue a final CPG for Vermont Yankee to operate through the end of 2014, based upon the latest agreement between Entergy and the State.  Then we all can finally put this embarrassing decade of state perfidy and simony behind us.

John McClaughry
Kirby, Vermont

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John McClaughry is vice-president and co-founder of the Ethan Allen Institute.  I am the director of the Energy Education Project of the Ethan Allen Institute.  McClaughry sent me a copy of the comments that he sent to the PSB, and I asked if I could use these comments as a guest post.
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The PSB is still accepting comments in favor of the plant.

 PSB hearing Brattleboro
November 2012
I encourage readers to take action by emailing comments to the Public Service Board.   Here's the link for comments:

For more information on the Public Service Board hearings and the Memorandum of Understanding, see the blog post Take Action: Comments to the Public Service Board.