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E-M:/ Release: Citizen Groups Warn Attorney General Cox About Enron-like Atomic Shell Game



To keep our posting limited I have left off the letter to the Attorney General. You can request a copy from myself: kcumbow@greatlakes.net  Thanks, Kay Cumbow

For Immediate Release: February 7, 2008

Beyond Nuclear * Citizens for Alternatives to Chemical Contamination

Coalition for a Nuclear-Free Great Lakes * Don?t Waste Michigan

Huron Environmental Activist League * Michigan Environmental Council

Contact: Kevin Kamps, Beyond Nuclear, (240) 462-3216

Kay Cumbow, Citizens for Alternatives to Chemical Contamination, (810) 346-4513

Michael Keegan, Coalition for a Nuclear-Free Great Lakes, (734) 770-1441

Citizen Groups Warn Attorney General Cox

About Enron-like Atomic Shell Game

Lansing, MI ? Six environmental groups sent a letter yesterday to Michigan?s Attorney General, Michael Cox, urging him to investigate the corporate restructuring of Mississippi-based Entergy Nuclear, which owns and operates the Palisades nuclear reactor in Covert, as well as bears responsibility for the high-level radioactive wastes stored at the former site of the Big Rock Point nuclear reactor in Charlevoix. Entergy is seeking permission from the U.S. Nuclear Regulatory Commission (NRC) to spin off Palisades and Big Rock Point ? and several additional reactors in Massachusetts, New York, and Vermont ? as limited liability holding companies.  To keep our posting

The Clarion Ledger in Mississippi recently quoted Entergy CEO J. Wayne Leonard as saying "the [nuclear] plants in Michigan and the Northeast had been ?the real cash cow? driving Entergy's earnings growth over the past nine years."

"As it laughs all the way to the bank, Entergy is playing a shell game with the radioactive risks of a rust bucket reactors and waste storage at Palisades, and seven other reactors" said Kevin Kamps of Beyond Nuclear, a national watchdog group based in Washington, D.C. "This smells like an Enron sequel, with a radioactive twist."

"Incredibly, Entergy?s first name for this corporate restructuring was SpinCo," said Michael Keegan of the Coalition for a Nuclear-Free Great Lakes in Monroe. "It couldn?t be more appropriate, as Entergy spins a web of illusory holding companies and legal gimmicks to shield itself from the catastrophic risks Palisades, Big Rock Point and other reactors pose to the Great Lakes and State of Michigan."

The coalition urged Attorney General Cox to "open up the process for the maximum public scrutiny and understanding, as capitalization has direct implications for Entergy's ability to assume its share of liability for any nuclear accidents under federal law."

"Our review of this proposal indicates a very complex and potentially conflicted restructuring of the Entergy entities," said Kay Cumbow of Citizens for Alternatives to Chemical Contamination in Brown City. "This restructuring will have ramifications of control, ownership, liabilities, and ultimately, potential conflicts of interest."

"We request that your office look into this matter at once, as there could likely be serious financial and safety ramifications for residents of the State of Michigan," said Toledo attorney Terry Lodge, counsel for Don?t Waste Michigan in its on-going struggle against the recent, controversial twenty-year license extension at Palisades, as well as the reactor?s sale from CMS/Consumers Energy to Entergy.

The environmental coalition also urged Attorney General Cox to consult with the Attorneys General of Massachusetts, New York, and Vermont on this Entergy Nuclear spin off of reactors in those states.

The environmental groups have sought an extension from the NRC in order to submit comments and consider formal intervention.

A copy of the environmental coalition?s letter to Attorney General Cox is attached.

--30--

Entergy Corporation submittals to the Nuclear Regulatory Commission.
 
"Entergy Corporate Restructure Application" December 5, 2007 
ML073440039   and  "Application for Order Approving Indirect Transfer of Control of Licenses" July 30, 2007 ML072220219 .

 
Federal Register January 16, 2008 (Volume 73 Number 11)
 
  Big Rock:  2956?2958 [E8?640] [TEXT]  [PDF]
  Palisades:  2948?2950 [E8?642] [TEXT]  [PDF]