Filling The Gap Vermont Yankee Could Leave

Over the course of my week long orientation at Vermont Law School I had a chance to visit Montpelier, Vermont and hear from state legislative leaders and attorneys about a variety of issues, including taxes, the structure of government in Vermont and the state's primary elections that took place earlier this week. In addition, I had the opportunity to attend a session examining the legal issues surrounding the pending closure of the Vermont Yankee Nuclear Power Plant and the role that renewables could potentially play when the 605-MW plant is potentially decommissioned in 2012.

The plant, which is owned by Entergy, makes up 33% of Vermont's overall power mix, a potentially serious gap that will need to be filled in order to keep the lights on. The leading sources slated to replace the power, according to Vermont State Rep. Margaret Cheney, are increasing imports from Hydro Quebec's portfolio in Canada, further increasing efficiency measures in the state and buying more power from the rest of the states in the region. Non-hydro renewables are really the dark horse in the discussion.

Should Vermont's feed-in tariff stay in place, there is some question about if it, and other FIT laws, violates the federal Public Utility Regulatory Policies Act (PURPA), renewables are expected to be increasingly adopted in the state, making up some of the gap mentioned above. It is expected that the Vermont Legislature will reexamine both the FIT law as well as passing a mandatory Renewable Portfolio Standard, further increasing adoption of renewables across the state.

The most fascinating part of the story however is the debate currently raging in the state about the closure of the plant itself, the reasons behind it and the impact it may have on the economy and the grid in the region.

The plant's licence to operate runs out on March 21, 2012. In order to operate beyond that date both the Vermont Public Service Board and the legislature would need to vote to authorize an extension. This situation arose as part of the deal that Entergy signed with the state when it acquired the plant in 2002. The mood in the region about the closing is that it's being done because the plant is unsafe, this however violates federal law as only the Nuclear Regulatory Commission can close a plant for safety reasons. The state can only make the decision on need or reliability issues.

The legislature is not expected to examine the issue again in 2011 as the makeup of the body is not expected to change enough to alter the overall opinion of the body. That however is not stopping Entergy from waging a PR campaign touting the safety of and economic benefits that the plant provides.

The biggest reason the issue may yet be reexamined before the deadline is in fact economic benefit. If the licence were renewed and the agreed upon price per MWh was above $61, Vermont would stand to gain under a 50% revenue sharing agreement that was part of an MOU it signed with Entergy.

Debate and political wrangling over these issues is far from over and as each plays out over the coming months I plan to write about them as much as I can while not immersed in legal study.

If you have thoughts about renewables and nuclear power in Vermont and New Hampshire please share them below.