Entergy, Vermont Electric agree on nuclear power contract for Vermont Yankee
The agreement is subject to approval by VEC's board of directors, and is contingent on the plant running after March 2012
New Orleans, March 31, 2011 — Entergy Nuclear Vermont Yankee, LLC has completed negotiations on a 20-year agreement to sell power from the Vermont Yankee nuclear plant to customers of Vermont Electric Cooperative, Inc., the third-largest electric distribution utility in Vermont.
The agreement is subject to approval by VEC's board of directors, and is contingent on the plant running after March 2012.
The power price for the first year of the contract is fixed and will be $49 per MWh, which is below the current market.
In subsequent years, pricing will be determined annually based on a predetermined formula designed to protect VEC from high market prices while also giving its members the opportunity to benefit from low market prices.
In the first 30 years of the plant's life before Entergy acquired it in 2002, the average capacity factor was below 78 percent and the plant never had a breaker-to-breaker run. In addition, Vermont Yankee has been evaluated in the "excellence" category as compared to its peers since Entergy acquired the nuclear power plant.
Entergy also stated that the previously announced process to explore the sale of the 605-MW plant has concluded without a sale.
Entergy noted that ending the sale process is not related to the recent nuclear events in the aftermath of Japan's catastrophic earthquake and tsunami. In addition, Entergy will evaluate on an ongoing basis any future opportunity for the plant should conditions change, consistent with its dynamic point-of-view based business strategy, just as it does for any business or asset.