By Sen. Peter Shumlin
Will we stake out a bold new energy agenda that creates thousands of good Vermont jobs in the fields of renewable energy and efficiency? Or will we stay tethered to an aging nuclear reactor — operated by a debt-ridden Wall Street business scheme — that could leave us paying high energy and cleanup costs far into the future?
For me the choice is clear. We must say “yes” to biomass, cow power and wind power in communities that want it. We must say “yes” to solar, small hydro and energy efficiency. We must make the kinds of investments that will help our small business owners create jobs for Vermont-based engineers, contractors, architects, plumbers, electricians, loggers, truckers, farmers and building supply companies.
For Vermont to reap the benefits of the high-paying jobs that the new economy can offer, we must have the courage to say “no” to relicensing Vermont Yankee for another 20 years. There are three main reasons why relicensing Vermont Yankee is not in the best interests of Vermonters.
First, the corporate spin-off from our current well-financed owner, Entergy, to the debt-ridden shell corporation, Enexus, is fiscally irresponsible and extremely unwise. Second, the decommissioning fund shortfall of almost $600 million leaves Vermont ratepayers on the hook to clean up the plant and its nuclear waste. Third, the price offered by Enexus (6.1 cents) for only 115MW, is a nearly 50 percent increase over our current price (4.2 cents), and would force Vermonters to pay more for less power.
Supporters of relicensing ask the following question: how will our state replace the 280 MW — 34 percent of all electric power usage — that is currently supplied by Vermont Yankee when the plant closes as scheduled in 2012?
The answer is clear when you consider what our region has to offer. The New England ISO’s (Independent System Operator) 2008 forecast demonstrates that the region will have nearly twice the capacity necessary to meet the demand of the six New England states now and in years to come. There is a diverse menu of options available, including natural gas, hydro, wind, solar, biomass and accelerated energy efficiency.
Vermont Yankee delivers just 2 percent of New England’s power. Natural gas, hydroelectric power and other renewable energy sources offer reliable, well-priced options with none of the liabilities and risks associated with an aging nuclear reactor. Vermont must take full advantage of these regional options in the short term, while aggressively developing local sources of renewable power that will ensure a stable and sustainable energy supply into the future.
Vermont Yankee is a 38-year-old nuclear reactor. Its parent company, Entergy, proposes to issue $4.7 billion in junk bonds and debt to spin Vermont Yankee and five other aging plants off to Enexus, pocketing $3.5 billion for shareholders while they wave goodbye to their Vermont commitment. After Lehman Brothers, AIG, Merrill, FairPoint and the rest, an objective observer would be justified in asking: When will we ever learn?
As a business owner, I urge us all to consider: If this spin-off is approved and Vermont Yankee is relicensed, we’ll be trading Entergy, an investment-grade company, for Enexus, a debt-ridden shell company with low-grade bond ratings. Enexus is more likely to default on its obligations or go bankrupt than Entergy. All of Vermont Yankee’s physical assets and contracts will be pledged as collateral for Enexus’ secured loans, whereas currently they are owned by Entergy, free and clear.
House Speaker Shap Smith and I are committed to a fair and open process as legislators decide whether or not to reauthorize Vermont Yankee to operate for an additional 20 years. I have asked my committees of jurisdiction to take testimony on the Enexus offer so that senators can draw their own conclusions. We welcome your thoughts as we consider this important decision.
It is my judgment that relicensing Vermont Yankee is not in the best interests of Vermont ratepayers. Now is the time to refocus our efforts on developing sustainable local sources of energy for our children, while at the same time bringing much-needed new economy jobs to our state.
This Op-Ed appeared in the Burlington Free Press
