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Costs
Just as CY had to ensure adequate funds to complete decommissioning, CY must make certain that there are adequate funds to store used fuel until the Department of Energy (DOE) meets its contractual obligations to remove the fuel and Greater than Class C (GTCC) waste.
Under a contract that the DOE signed with all nuclear plant owners under the Nuclear Waste Policy Act (NWPA), the DOE was to have a disposal facility open and receiving spent fuel by January 31, 1998. To date, the DOE has not removed any spent fuel or GTCC waste from the site, and it is uncertain when it will. In the meantime, it is CY’s responsibility as a U.S. Nuclear Regulatory Commission (NRC) licensee to store the spent nuclear fuel in accordance with NRC regulations.
The Federal Energy Regulatory Commission (FERC) reviews CY’s decommissioning and fuel storage cost estimates to determine if they are prudent. The funds are collected from the regional electric customers of CY's owners.
In 1998, Connecticut Yankee, Maine Yankee, and Yankee Rowe filed lawsuits against the federal government in the U.S Court of Federal Claims to force the DOE, not electric customers, to pay for the damages suffered by the Companies as a result of the DOE’s failure to honor their contract obligations, including the costs associated with the long-term fuel storage. The case went to trial in 2004. In 2005, the U.S. Court of Appeals for Federal Circuit ruled that plaintiffs could not recover future damages and limited recovery to those damages that have actually been sustained. Given that, the trial judge asked CY and the other Yankee Companies to file a new pleading setting forth the impact of this future damages decision on its claim. In December 2005 CY filed a pleading with the trial court asking it to award damages incurred through 2001. A Senior Judge in the US Court of Federal Claims issued a favorable ruling on September 30, 2006 regarding CY’s claim. In the ruling, CY was awarded 34.1 million. The federal government has appealed the decision, and a decision on the appeal is expected sometime this year. The ruling does not solve the problem of spent nuclear fuel remaining at the site and the federal government is urged to remove the material promptly. To read the press release, fact sheet, and federal court decision on this issue, please see the links below.
On December 13, 2007, CY, in conjunction with the other Yankee Companies, filed a second round of damage claims against the federal government in the U.S. Court of Federal Claims. The damage amounts are not identified in the complaints but will be prior to trial. The time period for CY’s damages begins on January 1, 2002 and will cover a period to be determined prior to trial. The longer the federal government delays in fulfilling its obligations, the greater the potential monetary damages will be.
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