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Vermont Yankee- The Last Yankee Standing Bev Good Entergy Nuclear- Sr. Project Manager Boston, MA July 29, 2014 1
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Introduction Historical-VY was part of a consortium of New England electric utilities Historical-VY was part of a consortium of New England electric utilities Entergy acquired VY in 2002 from VPNPC Entergy acquired VY in 2002 from VPNPC VY is 630 MW BWR operating for ~42 Years VY is 630 MW BWR operating for ~42 Years NRC approved license renewal until 2032 NRC approved license renewal until 2032 VY Produces ~70% of total energy demand of Vermont VY Produces ~70% of total energy demand of Vermont Operation of VY has saved more than 50 million tons of carbon released to the environment Operation of VY has saved more than 50 million tons of carbon released to the environment Shutdown announcement 8/27/13 Shutdown announcement 8/27/13 2
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Plant Performance Nuclear industry sustained reliability and productivity- average 90% capacity factor Nuclear industry sustained reliability and productivity- average 90% capacity factor Polar Vortex- Nuclear Saves the Day Polar Vortex- Nuclear Saves the Day No nuclear plant decommissioning for about 15 years, until recent shutdowns and announcements No nuclear plant decommissioning for about 15 years, until recent shutdowns and announcements VY performance has been safe and reliable VY performance has been safe and reliable 3
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Challenges to Long Term Operations Large capital investments to replace aging equipment Large capital investments to replace aging equipment Cost of regulatory compliance is ~20% of total capital expenditures; these costs have increased by ~95% since 2005 Cost of regulatory compliance is ~20% of total capital expenditures; these costs have increased by ~95% since 2005 Industry operating costs have increased ~15 % in the last 5 years Industry operating costs have increased ~15 % in the last 5 years Nuclear plant shutdowns due to equipment issues Nuclear plant shutdowns due to equipment issues 4
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Market Issues Capacity pricing Capacity pricing Fuel diversity Fuel diversity Low natural gas prices Low natural gas prices Failure to address issues: Failure to address issues: Compromise resource adequacy and reliability Compromise resource adequacy and reliability Increase price volatility for consumers Increase price volatility for consumers Challenge to carbon emission reduction goals Challenge to carbon emission reduction goals Nuclear plant shutdowns due to adverse market conditions Nuclear plant shutdowns due to adverse market conditions 5
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Industry Leadership Challenges Engage federal, state and local policy-makers and regulators to address market policies and practices that compromise the value of nuclear power. Engage federal, state and local policy-makers and regulators to address market policies and practices that compromise the value of nuclear power. Industry and NRC working together to address cumulative impacts of regulation. Industry and NRC working together to address cumulative impacts of regulation. 6
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Vermont Yankee Decision Entergy reached the shutdown decision based on a number of financial conditions: Entergy reached the shutdown decision based on a number of financial conditions: Low wholesale energy prices (brought about by low natural gas prices) significantly reduced Vermont Yankee’s revenues. Equally relevant is that low wholesale capacity prices in the New England region do not provide adequate compensation to VY for the reliability benefits it provides. Low wholesale energy prices (brought about by low natural gas prices) significantly reduced Vermont Yankee’s revenues. Equally relevant is that low wholesale capacity prices in the New England region do not provide adequate compensation to VY for the reliability benefits it provides. The financial impact of cumulative regulation challenges a small plant. The financial impact of cumulative regulation challenges a small plant. 7
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State of Vermont Entergy VY agreement and MOU with State Entergy VY agreement and MOU with State Certificate of Public Good (CPG) to operate until end of 2014 Certificate of Public Good (CPG) to operate until end of 2014 Legislation for Decommissioning Citizens Advisory Panel Legislation for Decommissioning Citizens Advisory Panel Economic development Economic development 8
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Decommissioning Methods Three NRC decommissioning options: DECON, SAFSTOR, ENTOMB Three NRC decommissioning options: DECON, SAFSTOR, ENTOMB Initial planning for maximum of 60 years SAFSTOR ensures adequacy of Nuclear Decommissioning Trust Fund & radioactive decay Initial planning for maximum of 60 years SAFSTOR ensures adequacy of Nuclear Decommissioning Trust Fund & radioactive decay Agreement with State of Vermont may lead to dismantling earlier than the maximum SAFSTOR period Agreement with State of Vermont may lead to dismantling earlier than the maximum SAFSTOR period 9
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End of Life Cycle- Decommissioning 10 Agreement with State of Vermont may lead to earlier dismantling than the maximum SAFSTOR period.
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Staffing Timeline 11
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Spent Fuel Plan 12
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13 SAFSTOR Timeline
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Leadership Focus Regulatory Relief Regulatory Relief State Involvement State Involvement Resources for both planning plus operating Resources for both planning plus operating Paradigm shift/culture change from Operating to Decommissioning Paradigm shift/culture change from Operating to Decommissioning Shift from budget perspective to Cash- flow/Cost Benefit Analysis process Shift from budget perspective to Cash- flow/Cost Benefit Analysis process 14
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Summary Learning organization: Learning organization: Gain understanding of decommissioning regulations Gain understanding of decommissioning regulations Extensive benchmarking Extensive benchmarking Check and adjust to regulatory and external influences Check and adjust to regulatory and external influences Developing new processes and leveraging existing Developing new processes and leveraging existing Developed comprehensive decommissioning model for first large scale BWR to transition to SAFSTOR Developed comprehensive decommissioning model for first large scale BWR to transition to SAFSTOR Pre-planning allows for cost-effective transition from operations to SAFSTOR: eliminate requirements, simplify work processes, reduce staffing Pre-planning allows for cost-effective transition from operations to SAFSTOR: eliminate requirements, simplify work processes, reduce staffing Plan on track for SAFSTOR Plan on track for SAFSTOR 15
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Vermont Yankee- The Last Yankee Standing Maine Yankee 1972-1996 Connecticut Yankee 1968-1996 Yankee Rowe 1961-1992 Vermont Yankee 1972-2014 16
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