Vermont Yankee owner Entergy Corp. announced Friday that it plans to offer the states largest utilities power at a starting price of 6.1 cents per kilowatt if the nuclear power plant is allowed to continue operating after 2012.

The new offer, referred to a in filing Friday afternoon with the state Public Service Board, would replace part of a revenue sharing agreement the power plant has with the utilities that would give the utilities a share in the sale of power above a certain price.

Entergy argues that the 6.1 percent price, which would increase annually by a specified index, is below projected market prices, though it is above current market prices. Under the utilities current contract with Entergy, they pay 4.2 cents/kwh, a price all the players expected would increase under a new contract.

Entergy contends the new agreement would have a $500 million benefit to Vermont ratepayers, far more than the value of the revenue sharing agreement.

The offer would be for 115 megawatts of power, half of what the utilities buy from Entergy now. The utilities have said they plan to buy less nuclear power in the coming years.

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- Terri Hallenbeck

Labels: vermont politics, Vermont Yankee