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Oct. / Nov. / Dec. 2009 - Nebraska Public Power District

Oct. / Nov. / Dec. 2009 - Nebraska Public Power District

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Entergy<br />

Nuclear signs<br />

until 2029<br />

An extension to the Cooper Nuclear<br />

Station Support Services Agreement<br />

with Entergy Nuclear was approved<br />

by NPPD’s Board of Directors at its<br />

<strong>Dec</strong>ember meeting. The amendment<br />

extends the current agreement for<br />

an additional term of 15 years until<br />

Jan. 18, 2029.<br />

“The decision to extend the Support Services Agreement<br />

was based on the significant improvements in regulatory<br />

and operational performance realized at CNS since the<br />

beginning of the agreement in <strong>Oct</strong>ober 2003.”<br />

- President and CEO Ron Asche<br />

ENERGY INSIGHT • OCTOBER / NOVEMBER / DECEMBER <strong>2009</strong> 15<br />

“I believe that NPPD and Entergy have established<br />

an effective partnership that bodes well for the future<br />

of CNS. NPPD has invested heavily in the plant to<br />

help set the stage for License Renewal. Preliminary<br />

work is also being performed to evaluate the<br />

feasibility of an extended power uprate for CNS. Our<br />

partnership with Entergy supports both of these longterm<br />

objectives.”<br />

“An additional feature of the amendment is to<br />

change certain provisions pertaining to compensation<br />

of Entergy that will allow NPPD to meet certain<br />

IRS tax exempt debt financing tests. This change, in<br />

conjunction with the expiration of the MidAmerican<br />

<strong>Power</strong> Sales Contract later this year, will allow the<br />

<strong>District</strong> to use tax exempt debt, instead of higher cost<br />

taxable debt, to finance capital projects at Cooper.<br />

This will result in lower overall power costs for<br />

Cooper Station in the future,” said Asche.<br />

In written comments to CNS employees, Asche said,<br />

“The Support Services Agreement has allowed NPPD<br />

to remain in the nuclear generation business which<br />

is a proud part of our heritage. It remains important<br />

to our Board that NPPD retain the CNS operating<br />

license. The Board also recognizes the importance of<br />

all the NPPD employees that help manage and operate<br />

the plant on a daily basis. It would be extremely<br />

challenging to operate in today’s environment without<br />

the benefit of the fleet affiliation that the agreement<br />

with Entergy allows. With climate change concerns,<br />

having CNS as an important part of our diverse<br />

generation mix is now more critical than ever.”

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