Entergy, NorthStar Reach Settlement Agreement with State of Vermont and Other Parties on Terms for the Approval of the Sale of Vermont Yankee
The agreement and MOU are significant milestones in the approval of the proposed transaction. If the transaction is approved by the
The Vermont agencies signing the agreement, in whole or in part, are: the
The Vermont PUC approval of the MOU and an order approving the proposed transaction are pre-conditions to closing of the proposed transaction between
Financial Assurance
The original application reflected a number of forms of financial assurance in support of the decommissioning and restoration of the Vermont Yankee site. As part of the MOU and settlement agreement, NorthStar has agreed to provide additional financial assurance, as follows:
- An increase in its Support Agreement from
$125 million to$140 million ; - The establishment of an interest-bearing escrow account that will initially be funded with
$30 million and will, with additional contributions from NorthStar over time, grow to a minimum balance of$55 million . Withdrawals from this escrow account may be made only with approval from DPS and ANR; - A
$25 million NorthStar subcontractor guaranty available in the event and to the extent that all other forms of financial assurance are unavailable; - A
$30 million Pollution Legal Liability insurance product that will provide coverage for site restoration activities to address previously unknown or not fully characterized non-radiological environmental conditions identified at theVY Station site after the closing of the proposed transaction; - A comprehensive reporting protocol that will provide appropriate state agencies with detailed information about the progress and financial status of the decommissioning project; and
- NorthStar has also agreed to engage in public process and transparency measures throughout the decommissioning process and will continue to work with stakeholders to ensure that the public remains informed about the progress at the Vermont Yankee site.
As part of the MOU and settlement agreement,
Entergy will contribute to theSite Restoration Trust (SRT) (established as a result of the 2013 settlement agreement betweenEntergy and theState of Vermont ) an amount sufficient to bring the balance of the SRT to$60 million . Given the current SRT balance, the contribution is expected to be approximately$30 million . At the same time,Entergy Corporation will terminate the existing$20 million parent guaranty supporting the trust; andEntergy has agreed to a potential contribution of$40 million ofDepartment of Energy litigation proceeds expected in 2023 if, and only if, at that time certain decommissioning project milestones have not been met, if the cost to complete decommissioning and site restoration is expected to exceed the amount in theNuclear Decommissioning Trust and the SRT, or if certain financial assurances have been called upon. If the conditions are met that require the contribution of the$40 million , those funds would be placed in an escrow account by NorthStar, but such funds could not be used unless all other forms of financial assurance (other than the$25 million NorthStar subcontractor guaranty) have been exhausted. NorthStar would remain liable toEntergy for the$40 million under the terms of the parties' commercial agreement.
The terms of the MOU and settlement agreement, including the financial assurance terms discussed above, are consistent with
Site Restoration Standards
The parties have agreed to detailed site restoration standards that are fully protective of the environment as well as fully protective of the health and safety of workers and the public. The standards to which NorthStar will adhere include the following key terms:
- Release of the site to a radiological dose limit of 15 mrem/year from all pathways combined, with no more than 5 mrem/year from liquid effluents, with the understanding that NorthStar will attempt to attain a calculated annual 10mR TEDE All Pathways and 4mR TEDE Water residual radiation standard, unless NorthStar determines that the attainment of the latter standard would be cost prohibitive or technically infeasible because of site conditions;
- Completion of a comprehensive site investigation and any required corrective actions in accordance with ANR regulations and pursuant to a schedule developed in consultation with the
Town of Vernon and approved by ANR; - Compliance with the Vermont Radiological Health Rule intended to protect individual workers on the site and the general public outside of the Vermont Yankee property;
- Submission of plans (1) to perform groundwater sampling of non-radiological contamination, (2) to characterize below-grade structures that NorthStar proposes to leave in place, (3) for any use of concrete as fill at the site, and (4) for any use of off-site materials proposed to be used as fill on site, including a plan to characterize off-site materials;
- For applicable segments of the property, and upon approval of an institutional control plan by ANR, NorthStar will remediate the site to comply with environmental standards applicable to industrial sites. If NorthStar does not receive approval for an institutional control plan with respect to specific segments of the site, it shall remediate those segments to comply with standards applicable to residential sites;
- Removal of all above-ground structures at the site, other than the Independent Spent Fuel Storage Installation (ISFSI) and associated security facilities, the VELCO switchyard, the administrative office building known as the
Plant Support Building , and the portion of the railroad spur that is able to be released for unrestricted use from the NRC-issuedVermont Yankee operating license; and - Removal of all underground structures at the site — including, without limitation, building foundations, buried piping, and contained piping — to a depth of 4 feet below ground surface and to a greater depth wherever required to meet the site release standards described in the agreement. Asbestos-containing material shall be removed regardless of depth.
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NorthStar, based in
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time,
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in
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