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 ) ) ) ) ) ) ) ) ) ) ) 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 1 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. 2 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). . 3 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. 4 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 5 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 6