STATE OF VERMONT
PUBLIC SERVICE BOARD
Docket No. 7404
Petition of Entergy Nuclear Vermont, LLC, and Entergy
Nuclear Operations, Inc., pursuant to 30 V.S.A. 107, 108,
231, and 232, for Approval of an Indirect Transfer of
Control of Each Company, Consent to Pledge of Assets,
Guarantees and Assignments of Contracts by Entergy
Nuclear Vermont Yankee, LLC, and Amend to the CPG
of Entergy Nuclear Operations, Inc., to Reflect Name
Change, Replacement of $60 Million Guaranty with
$60 Million Letter of Credit and Substitution of $700
Million Support Agreement for Two Inter-Company
Credit Facilities
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INITIAL BRIEF OF IBEW LOCAL 300
Comes International Brotherhood of Electrical Workers Local Union No. 300 (“IBEW”),
by undersigned counsel, and provides its initial brief in this docket.
Petitioners ask this Board to find their proposed transaction to be in public good of the
State of Vermont, per 30 V.S.A. 231(a), and to amend, accordingly, the Certificate of Public
Good issued in Docket No. 6545. They do not allege that the existing arrangements have failed
or fallen short of their promise or performance, but rather that the proposed structuring, with its
indirect transfer of control, pledge of assets, guarantees and assignment of contracts and its name
change, and reorganization of credit and support financial arrangement will “promote the general
good of the state.” 30 V.S.A. 231(a).
This proposed transaction is very complex, and would result in a far more complicated
structure affecting and reflected in changed ownership, altered operational and management
arrangements, and reorganized financial provisions. It has been alleged in the filings and the
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testimony by Petitioners that such would have no material adverse effect on Vermont or on the
Vermont Yankee Station and its operations.
Unfortunately, this case has been presented ahead of itself. For reasons unexplained,
Petitioners have been in a hurry to have the matter heard and decided. Even though the Parties,
including IBEW, have cooperated in the Petitioners’ desire for expedition, there has been a price
negatively affecting the Parties and the Board’s ability, it seems to IBEW, to fully and
confidently ascertain and determine whether this transaction promotes the general good.
Even after the completion of hearings, IBEW suggests that the Board and the Parties do
not have a complete picture of the transaction, do not have a complete set of finished documents
comprising the transaction, and have not been able to establish a clear picture, in detail, of the
structure, its operation and terms. The record is incomplete, at this time..
Furthermore, because of lack of a clear record, it has been difficult to sort out the true
nature and full impact of the proposed transaction on the Vermont Yankee Plant, its operation
and its economics. The Petition, among other allegations, in paragraphs 17-19, suggest no
change or affect, but the language is carefully drawn to avoid the issues of whether there are
matters involving the operation and economics of the Vermont Yankee Plant not being addressed
now and which the transaction, if approved, will not address, and may even worsen because of
its very complexity and incompleteness.
The structure will be far more complex than the existing structure. See Curry En Exhibits
1 and 2 (revised). Board Ex. No. 2. The structure requires a series of new agreements and
documents to lay out the terms and obligations of the arrangements in the new structure,
including a shared services agreement and operating agreement with multiple appendices not yet
completed or provided (En - JPD 1, Form of Operating Agreement). See GMP/CVPS NRB Ex.
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No. 1, and the Support Agreement (Revised) shown in Curry EN No. 3. These documents, as
filed with the Board, remain incomplete.
Furthermore, Petitioners’ witnesses, Ms. Wanda Curry and Mr. Joseph DeRoy, are very
senior persons, who themselves could only speak generally and not in detail about whether and
how the proposed transaction would strength the operations and economics of the plant at the
plant level.
Vermont must have a full and complete understanding on how and under what terms this
plant is going to be operated if the Petition were approved.
IBEW has reviewed the evidence, including the testimony, evaluation of the evidence and
review of the proposed documents. IBEW suggests the following conditions in order to cure
certain deficiencies. If they are adopted in total, then IBEW could support the Proposed
Transaction with a complete record occasioned by Petitioners filing the final and complete
documents with all attachments and referenced documents. If not, then it opposes the Petition.
1.
Pension
a. Company to pay all fees associated with the requirement to sell off 401-K Stock by
the employees associated with the restructuring petition. No administrative fees shall
be charged against an individual(s) account or the plan(s);
b. In order to protect the less than one-hundred percent funded plan (See Curry
testimony), with a company with zero assets, a member appointed by IBEW Local
300 shall be authorized to represent IBEW on what is presently known as the Entergy
Employee Benefits Committee and on the equivalent entity (such as EquaGen
Employee Benefits Committee). .
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2. Job Security
No employee(s) shall be laid off at the Enexus Nuclear Vermont Yankee facility by
EquaGen Nuclear or its successor while EquaGen Nuclear or its parent Company(s) is
conducting work at Enexus Nuclear Vermont Yankee, where the employee(s) covered
by a collective bargaining agreement is qualified to do the work.
3. Vacancies
In IBEW Ex. Nos. 13 and 14, Petitioners’ discovery responses to IBEW: EN. 2-4 and
2-5, Petitioners respond concerning seventy (70) vacancies they have identified at the
Station, for which they provided a chart. In accordance with the chart provided, the
Employer shall provide the Intervenors and the Board with monthly written updates
on the various open positions identified and defined in the chart provided. A genuine
effort in filling the vacancies in a timely manner shall be shown.
4. Termination of Operating Agreement and Lack of Successor Language
Section 8 of the Amended Operating Agreement (En - JPD 1, Form of Operating
Agreement), which addresses termination, fails to provide any successor language
for the existing collective bargaining agreement in the event of termination. In
particular see Section 8.7.c. and see Section 2.1e.ii.ii (page 12-13). As a result, in
event of termination, employees at the Station who are under a collective bargaining
agreement could find a successor employer in place with no obligation to them. That
is not to the general good of Vermont.
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Petitioners should provide successor language to require any entity which succeeds
to the operating authority to be bound in full by the Collective Bargaining
Agreement. Further, if Entergy/EquaGen (or other name/entity) Nuclear Vermont
Yankee sells, leases, transfers or assigns the operations covered by the Agreement,
that the transferee must be bound by the terms of the Collective Bargaining
Agreement. Also, that Enexus Entergy Corporation so called as well as any and all
of its direct or indirect subsidiaries and successors recognize, accept and be legally
bound, by all the terms of the Collective Bargaining Agreement The restructuring
can be a device to void, in effect, or to provide a mechanism to void, in effect, the
existing Collective Bargaining Agreement, and such must not be permitted. Such
would not be in the general good of Vermont.
5. Affirmative Safety Orientation
All outside vendors, contractors and the like. who perform any work, inspection or
maintenance at the Station shall be required, without exception, to go thru an
affirmative safety orientation. No more sign offs.
6. Records Maintained in Vermont
All Enexus employee records of employees working at the Vermont Yankee Station
shall be maintained and housed in Vermont.
7. Retention and Recruitment
To eliminate the risk of draining existing employees if the restructuring petition is
approved, require that existing employee be retained and to recruit new ones to fill
vacancies and to maintain performance. Agree to a wage adjustment is necessary to
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bring wages pf employees in line with other presently owed Entergy nuclear plants
general wage increases.
8. Safety Conscious Workforce and Environment Must Apply to Contractors
The language in the Operating Agreement, Section 15.2, c.ii, regarding the obligation
to maintain a safety conscious environment should be amended to apply to
contractors as well as to employees. For example, line five, reading “that its
employees are continuously aware of” should have the words “or contractors”
inserted after “employees.” This ties in with condition number 5, Affirmative Safety
Orientation.
Respectfully submitted,
/s/ Brian Lederer
Brian Lederer, Esq.
3003 Van Ness St., NW, Suite W228
Washington, D.C. 20008
(202) 244-1715
August 12, 2008
Certificate of Service
I hereby certify that this 12th day of August 2008, a copy of the foregoing Initial Brief, this 12th
day of August 2008, was mailed to all parties of record, as stated in the service list to date and
was transmitted also electronically.
/s/ Brian Lederer
_____________________
Brian Lederer
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