Entergy 2008 Annual Report Download - page 20

to deteriorate. In the third quarter, conditions reached a point
where we were simply precluded from launching any of the
planned high-yield financing for the transaction. Combined
with pending regulatory approvals, the spin was unable to
be completed in 2008. We are now in a position of rolling
readiness, prepared to act promptly once we receive
acceptable regulatory approvals and the timing is right to
access financial markets.
Built on Operational Excellence
Even as teams worked to prepare for a spin transaction, other
teams of managers, operators and engineers focused on
operational excellence at our non-utility nuclear fleet. In 2008,
our non-utility nuclear fleet achieved its highest level of generating
output under Entergy ownership. In addition, production costs
for our non-utility nuclear fleet in 2008 were $22 per MWh and
our capability factor reached 95 percent. By comparison, before
Entergy took ownership of these assets, production costs were
$30 per MWh and the capability factor was 73 percent.
Other operating milestones in 2008 include recognition
by the Nuclear Energy Institute with a Top Industry Practice
Award, for Entergy Nuclear’s team approach to implement
an integrated operational data exchange to give the company
access to the vendor’s engineering programs. These awards are
given to nuclear energy operators for innovations that improve
safety, economics or plant performance. In addition, in August
2008, Indian Point Energy Center successfully placed into
service a new state-of-the-art siren system. Reliability testing
was completed during the fourth quarter, with the three tests
successfully exceeding the reliability threshold of at least 97
percent. The original siren system will remain in place in
standby mode while performance evaluation of the new
system continues.
Safety is our top priority in our nuclear operations, as it is
in all Entergy operations. Within our non-utility nuclear fleet,
our work sites at James A. FitzPatrick Nuclear Power Plant and
Pilgrim Nuclear Station have earned Star status under the
Occupational Safety and Health Administration’s Voluntary
Protection Program, which is the highest safety rating for an
industrial work site. In addition, Vermont Yankee Nuclear
Power Station received merit designation, which is considered
an effective stepping stone to Star status.
Operating our nuclear fleet safely, securely and with
industry-leading performance is quite simply part of our DNA
at Entergy. This will continue to be our operating philosophy
after the spin transaction, when the same team will operate
Enexus’ nuclear assets as members of the EquaGen nuclear
services joint venture organization.
License Renewal Process on Track
In September, the Nuclear Regulatory Commission renewed
the license for the James A. FitzPatrick Nuclear Power Plant
for another 20 years. We continue to make progress on license
renewals for our other non-utility nuclear plants:
n At the end of October, the Atomic Safety Licensing Board
issued a favorable ruling on license renewal for Pilgrim
Nuclear Station. We expect an NRC decision by mid-2009.
n In November, the Atomic Safety Licensing Board ruled in
favor of Vermont Yankee Nuclear Power Station license
renewal on two of three contentions and imposed a
conditional favorable ruling on the third contention.
Vermont Yankee has since complied with the condition
for the third contention. We expect the NRC decision on
Vermont Yankee license renewal in the second half of 2009.
We continue to work with Vermont regulators and legislators
to gain state approvals for the required Certificate of Public
Good to ensure local markets have continued access to clean,
affordable power from this vital nuclear resource for another
20 years. In fact, overall conclusions from the recent State
Reliability Study of Vermont Yankee affirmed its commitment
to excellence, indicating that the plant is reliable and can be
operated reliably in the future.
n Indian Point Energy Center Units 2 and 3 are on track to
receive an NRC decision on license renewal in early 2011.
In furtherance of license renewal, in 2008 Entergy Nuclear
embarked on an unprecedented independent evaluation of
safety, security and emergency preparedness of the Indian
Point Energy Center, performed by a 12-member panel of
highly credentialed experts with over 400 years of industry
and/or academic achievement. The Independent Safety
Evaluation Panel reported its findings in July 2008, reaching
two overarching conclusions. First, Indian Point is safe, meets
NRC requirements and safety systems are well maintained
and reliable with performance, comparing favorably to high-
performing plants in most nuclear safety aspects. However, it
also concluded that relationships with the general public and
officials, particularly on matters of emergency preparedness,
are not healthy and must be rebuilt. We applaud the panel’s
effort and have responded to the report with action plans to
implement panel recommendations. These plans will help
MEETING THE CHALLENGE:
Delivering clean, vital nuclear power with
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