Boston Edison Company

United States Court of Federal Claims·Decided November 15, 2021·No. 20-529·Published

Opinion

In the United States Court of Federal Claims No. 20-529C

(Filed: November 15, 2021)

)

BOSTON EDISON COMPANY, et al., ) Motion by defendant-intervenor for ) summary judgment; effect of prior Plaintiff, ) decisions; accrual of claims; ripeness;

) reconsideration denied v. )

)

UNITED STATES, )

)

Defendant, )

)

and )

)

HOLTEC PILGRIM, LLC, )

)

Defendant-Intervenor. )

)

Richard J. Conway, Blank Rome LLP, Washington, D.C., for plaintiff. With him on the briefs were Frederick M. Lowther and Adam Proujansky, Blank Rome LLP, Washington, D.C., and Neven Rabadjija, Deputy General Counsel, Eversource Energy, Boston, Massachusetts.

Daniel Falknor, Trial Attorney, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, D.C., for the United States. With him on briefs were Brian M. Boyton, Acting Assistant Attorney General, and Martin F. Hockey, Jr., Acting Director, and Lisa L. Donahue, Assistant Director, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, D.C., as well as Brighton Springer, Office of the General Counsel, United States Department of Energy, Washington, D.C.

Adam K. Israel, Balch & Bingham LLP, Birmingham, Alabama, for defendant-

intervenor. With him on the briefs was Alan D. Lovett, Balch & Bingham LLP, Birmingham, Alabama.

OPINION AND ORDER

LETTOW, Senior Judge.

Two decades of litigation between plaintiff, Boston Edison Company (“Boston Edison”), and defendant, the United States through the Department of Energy (“DOE” or “the agency”), have not resulted in a final resolution of Boston Edison’s claim in this case involving the

agency’s contractual obligation to collect, transport, and dispose of spent nuclear fuel (“SNF”). 1 Now, defendant-intervenor, Holtec Pilgrim, LLC (“Holtec”), moves the court for summary judgment to reject Boston Edison’s claim on grounds that seek to revisit and recast the legal landscape in those decades of litigation. For the reasons set out below, Holtec’s motion is DENIED.

BACKGROUND 2

Boston Edison entered into a Standard Contract with DOE in 1983 pursuant to the Nuclear Waste Policy Act of 1982. See Boston Edison VIII, 152 Fed. Cl. at 360. The Standard Contract “obligated the DOE to collect, transport, and dispose of SNF from Boston Edison’s Pilgrim Nuclear Power Station (‘Pilgrim’).” Id. The agency has yet to do so. Id.; see also Boston Edison VII, 106 Fed. Cl. at 333 (“The government failed to perform at the set time, has not performed since, and is not expected to perform at any foreseeable time in the future.”).

In 1999, Boston Edison sold the Pilgrim Nuclear Power Station at Plymouth, Massachusetts to Entergy Nuclear General Company, LLC (“Entergy”). Boston VIII, 152 Fed. Cl. at 360. That sale was prompted by the Commonwealth of Massachusetts, which enacted legislation “requir[ing] regulated utilities such as Boston Edison either to sell their electricity generation assets and operations or to functionally separate their generation operations from their transmission and distribution operations.” Boston Edison VI, 658 F.3d at 1364. Boston Edison chose to sell and pursuant to “the purchase agreement, Boston Edison agreed to pay Entergy tens of millions of dollars for long-term, on-site storage of Pilgrim SNF,” the amount of which “was included in Pilgrim’s Decommissioning Trust Fund at the time of the sale.” Boston Edison VIII, 152 Fed. Cl. at 360 (internal citations and quotation marks omitted). In exchange, “Entergy . . . accepted the decommissioning and SNF storage responsibilities for Pilgrim.” Boston Edison VII, 106 Fed. Cl. at 333. Boston Edison assigned all its “rights and interests in, and obligations under, the Standard Contract” to Entergy, provided that Boston Edison would retain “any and all

1 This is the tenth opinion emanating from this court and the United States Court of Appeals for the Federal Circuit dealing with the dispute. See Boston Edison Co. v. United States, 64 Fed. Cl. 167 (2005) (‘‘Boston Edison I’’); Boston Edison Co. v. United States, 67 Fed. Cl. 63 (2005) (‘‘Boston Edison II’’); Boston Edison Co. v. United States, 80 Fed. Cl. 468 (2008) (‘‘Boston Edison III’’), appeal dismissed and remanded, Boston Edison Co. v. United States, 299 Fed. Appx. 956 (Fed. Cir. 2008) (‘‘Boston Edison IV’’); Boston Edison Co. v. United States, 93 Fed. Cl. 105 (2010) (‘‘Boston Edison V’’), aff’d in part, rev’d in part, and remanded, Boston Edison Co. v. United States, 658 F.3d 1361 (Fed. Cir. 2011) (‘‘Boston Edison VI’’); Boston Edison Co. v. United States, 106 Fed. Cl. 330 (2012) (‘‘Boston Edison VII’’); Entergy Nuclear Generation Co. v. United States, 130 Fed. Cl. 466 (2017); Boston Edison Co. v. United States, 152 Fed. Cl. 358 (2021) (“Boston Edison VIII”).

2 The recitations that follow do not constitute findings of fact but rather are recitals attendant to the pending motions and reflect matters drawn from the complaint, the parties’ briefs, and records and documents appended to the complaint and briefs, as well as past decisions.

claims of the Assignor related or pertaining to [DOE’s] defaults under the Standard Contract accrued as of the sale date, July 13, 1999, whether relating to periods prior to or following July 13, 1999.” Boston Edison VIII, 152 Fed. Cl. at 360-61 (alterations and quotation marks omitted).

Litigation stemming from DOE’s breach of the Standard Contract with Boston Edison has been extensive:

Boston Edison first filed suit in 1999. Compl. ¶ 23. This court found that DOE breached its contractual obligations to Boston Edison and awarded Boston Edison damages exceeding $40 million for diminution of value “for SNF storage costs included in the decommissioning fund Entergy received from Boston Edison upon the sale of Pilgrim.” Boston Edison III, 80 Fed. Cl. at 492. On appeal, the United States Court of Appeals for the Federal Circuit reversed in part, stating that Boston Edison could not recover “prospective damages for anticipated future nonperformance . . . in a partial breach case.” Boston Edison VI, 658 F.3d at 136 (citing Indiana Michigan Power Co. v. United States, 422 F.3d 1369, 1376, (2005)). On remand, this court held that . . . Boston Edison retained a “nascent claim for decommissioning costs,” Boston Edison VII, 106 Fed. Cl. at 342, which would “fully mature . . . on decommissioning,” id. at 341. The court, therefore, dismissed the case without prejudice. Id. at 343. In November 2015, after learning that Entergy planned to cease operations at Pilgrim beginning in June 2019, Boston Edison again filed suit in this court. Compl. ¶¶ 28-29. The court subsequently dismissed Boston Edison’s claim without prejudice because Boston Edison’s claim was “dependent upon decommissioning at Pilgrim” and those “damages [were] not yet ascertainable.” Entergy Nuclear, 130 Fed. Cl. at 475.

Boston Edison VIII, 152 Fed. Cl. at 361 (some alterations in original).

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