Vermont Yankee Whats Next? Safe and Green Campaign December 3, 2013 - PowerPoint PPT Presentation

Vermont Yankee What’s Next? Safe and Green Campaign December 3, 2013 DRAFT 12/02/13 Presented by Tom Buchanan

Tom Buchanan • Windham Regional Commission (WRC) • Commissioner representing Town of Londonderry • Chair VY Study Committee/Member Ex. Board • Began work on the VY project in October, 2007 • Responsible for making policy recommendations • Party in Certificate of Public Good (CPG) docket • Speaking today as an individual 2

Overview • Virtual Tour of Vermont Yankee Virtual Tour • Standards of Decommissioning Standards and Site Restoration • Timing of Decommissioning Process Timing • The Decommissioning Trust Fund Trust Fund • Options: DECON vs. SAFSTOR Options • Influencing the Process Influence 3

Overview Virtual Tour Virtual Tour Standards of Timing Vermont Trust Fund Yankee Options Influence 4

Vermont Yankee Property (~148 acres) Connecticut River Main Entrance Governor Hunt Road 6

Vermont Yankee Property (~148 acres) Connecticut River Main Facility Cooling Towers Switchyard Governor Hunt Road 7

Connecticut River Vermont Yankee Property (~148 acres) Reactor Building Turbine Building 8

Connecticut River Vermont Yankee Property (~148 acres) Intake Structure Discharge Structure 9

Connecticut River Vermont Yankee Property (~148 acres) ISFSI Spent Fuel Storage 10

important take- away… The VY site is not very large, but if the decommissioning is managed well, much of the site can eventually be returned to productive economic use. 12

Overview Virtual Tour Standards of Standards Decommissioning Timing and Trust Fund Site Restoration Options Influence 13

Decommissioning & Site Restoration NRC Regulates Radiological Decommissioning Only: 25 millirem + ALARA 14

Vermont Standard “Site restoration shall mean that, once the VYNPS site is no longer used for nuclear purposes or non-nuclear commercial, industrial, or similar uses consistent with the orderly development of the property, the site will be restored by removal of all structures and, if appropriate, regarding and reseeding the land . ” Source: Docket 6545 MOU, paragraph 3 (2002 sale from VYNPC to ENVY) 16

important take- away… The NRC only requires radiological decommissioning. The “ greenfielding ” of the site is a state requirement, and the specific terms are in dispute. 18

Overview Virtual Tour Timing of the Standards Decommissioning Timing Process Trust Fund Options Influence 19

Timing • The most recently discharged fuel must remain in the spent fuel pool for at least five years before being moved to casks. • The NRC requires that radiological decommissioning be completed within 60 years.* This part of the process is called DECON. • The NRC allows a licensee wide latitude to delay radiological decommissioning. The period of delay is called SAFSTOR. 20 *The 2012 Vermont Yankee PSDAR assumes a 54 year period of SAFSTOR

Timing Entergy must submit several reports to the NRC within two years of shutdown (by December 2016): • Post Shutdown Decommissioning Activities Report (PSDAR). • Site Specific Decommissioning Cost Estimate • Updated Spent Fuel Management Plan 21

Timing • The reports must define the planned approach to decommissioning and timing, and show how it will be funded. • The NRC will hold public meetings on the plan. The NRC is generally deferential to the licensee, but can be influenced by public comments and governmental policy. DECON 60 Yea rs 2074 2014 22

Timing • The reports must define the planned approach to decommissioning and timing, and show how it will be funded. • The NRC will hold public meetings on the plan. The NRC is generally deferential to the licensee, but can be influenced by public comments and governmental policy. DECON SAFSTOR 60 Yea rs 2074 2014 23

Timing • The reports must define the planned approach to decommissioning and timing, and show how it will be funded. • The NRC will hold public meetings on the plan. The NRC is generally deferential to the licensee, but can be influenced by public comments and governmental policy. SAFSTOR DECON 60 Yea rs 2074 2014 24

Timing • The reports must define the planned approach to decommissioning and timing, and show how it will be funded. • The NRC will hold public meetings on the plan. The NRC is generally deferential to the licensee, but can be influenced by public comments and governmental policy. DECON DECON SAFSTOR 60 Yea rs 2074 2014 25

Timing A period of SAFSTOR appears inevitable… The best we can hope for is probably a short period of SAFSTOR followed promptly by complete decommissioning. SAFSTOR DECON 60 Yea rs 2074 2014 26

important take- away… Entergy will file a decommissioning plan with the NRC within two years of shutdown, and the public will be given an opportunity to comment. 29

Overview Virtual Tour The Standards Decommissioning Timing Trust Fund Trust Fund Options Influence 30

Trust Fund The value of the Decommissioning Trust Fund on October 31, 2013 was: $598 Million 31 Source: Entergy advisory email to DPS, 11/7/13 (Malmquist to Commons)

Trust Fund • When Entergy bought VY in 2002 the Decommissioning Trust Fund was valued at approximately $310 million. $700,000,000 $600,000,000 Value (millions of dollars) $500,000,000 $400,000,000 $300,000,000 Amount $200,000,000 $100,000,000 $0 07/01/02 05/01/03 03/01/04 01/01/05 11/01/05 09/01/06 07/01/07 05/01/08 03/01/09 01/01/10 11/01/10 09/01/11 07/01/12 05/01/13 2002-2013 Source: Various filings, dockets 7440 &7862 32 Value dropped to $359 million on 3/31/09

Trust Fund • The fund must grow faster than inflation, and when in SAFSTOR it must grow faster than inflation plus the cost of site maintenance. $700,000,000 $600,000,000 Value (millions of dollars) $500,000,000 $400,000,000 $300,000,000 Amount $200,000,000 $100,000,000 $0 07/01/02 05/01/03 03/01/04 01/01/05 11/01/05 09/01/06 07/01/07 05/01/08 03/01/09 01/01/10 11/01/10 09/01/11 07/01/12 05/01/13 2002-2013 Source: Various filings, dockets 7440 &7862 33

Trust Fund • The fund must cover costs of decontaminating the site, managing the fuel (with some reimbursement from DOE), and restoring the site. Example: Shutdown in 2032, all fuel off site in 2082 DECON SAFSTOR License Termination (DECON) $566.7m $622.5m Spent Fuel Management $365.3m $397.2m Site Restoration $ 47.8m $ 47.7m Total Cost $979.9m $1.06b Source: Decommissioning Cost Analysis, February 2012, scenarios 4/6, 2011 dollars, truncated (Other SAFSTOR scenario maximums: Total $1.159b, Lic termination $653.1m, SF Mgt $502.9m) 35

Trust Fund The Decommissioning Trust Fund and the VY Station are owned by and Entergy subsidiary called Entergy Nuclear Vermont Yankee (ENVY) Entergy Corporation 3 1 Entergy Nuclear Entergy Nuclear Vermont Yankee Operations (ENVY) (ENO) 37

Trust Fund The Decommissioning Trust Fund and the VY Station are owned by and Entergy subsidiary called Entergy Nuclear Vermont Yankee (ENVY) Entergy Corporation 3 1 Entergy Nuclear Entergy Nuclear Vermont Yankee Operations (ENVY) (ENO) 38

important take- away… The decommissioning trust fund has performed well in real terms and relative to inflation, but it may never be sufficient to fully restore the site. Unless additional funding sources are secured, any additional costs charged to the decommissioning fund will delay the point at which the site can be decommissioned and restored. 39

Overview Virtual Tour DECON Standards vs. Timing SAFSTOR Trust Fund Options Influence 40

DECON vs. SAFSTOR • Prompt decommissioning returns the land to productive economic use sooner than if decommissioning is delayed. 41

DECON vs. SAFSTOR • Prompt decommissioning provides a better economic and employment profile. Source: Docket 7862, A.WRC:EN.1-27.1 and A.WRC:EN.1-27.2, graphics provided by Entergy 42

DECON vs. SAFSTOR • Prompt decommissioning provides access to a workforce with legacy knowledge. 43

DECON vs. SAFSTOR • Prompt decommissioning eliminates market uncertainties associated with the Decommissioning Trust Fund, and the risk of inflation. 44 Source: Various filings, dockets 7440 &7862

DECON vs. SAFSTOR • Prompt decommissioning is less expensive than SAFSTOR under every scenario pairing. Example: Shutdown in 2032, all fuel off site in 2082 DECON SAFSTOR License Termination (DECON) $566.7m $622.5m Spent Fuel Management $365.3m $397.2m Site Restoration $ 47.8m $ 47.7m Total Cost $979.9m $1.06b Source: Decommissioning Cost Analysis, February 2012, scenarios 4/6, 2011 dollars, truncated (Value of Decommissioning Fund on 7/31/13~$582 million, source: Entergy press release, WRC-X) 45

DECON vs. SAFSTOR • Prompt decommissioning Provides greater assurance of corporate responsibility. Entergy Corporation 3 1 Entergy Nuclear Entergy Nuclear Vermont Yankee Operations (ENVY) (ENO) 46