Entergy Nuclear Generation Company v. United States

CourtUnited States Court of Federal Claims
DecidedJune 19, 2018
Docket14-1248
StatusPublished

This text of Entergy Nuclear Generation Company v. United States (Entergy Nuclear Generation Company v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Entergy Nuclear Generation Company v. United States, (uscfc 2018).

Opinion

In the United States Court of Federal Claims No. 14-1248C

(Filed: June 19, 2017)

********************************** ENTERGY NUCLEAR ) Claimed partial breach of contract for GENERATION COMPANY, ) disposal of spent nuclear fuel; uncontested ) liability for certain damages; Plaintiff, ) inappropriateness of judgment under Rule ) 54(b); disputed causation for damages v. ) based on NRC fee change in 1999 ) UNITED STATES, ) ) Defendant. ) ) ) **********************************

L. Jager Smith, Jr., Jager Smith, LLC, Jackson, Mississippi, for plaintiff. Of counsel were Alex D. Tomaszczuk, Jay E. Silberg, and Clare Cavaliero Pincoski, Pillsbury Winthrop Shaw Pittman LLP, Washington, D.C., and Sam O. Morris, Jackson, Mississippi.

Kristin McGrory, Trial Attorney, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, D.C., for defendant. With her on the briefs were Chad A. Readler, Acting Assistant Attorney General, Civil Division, and Robert E. Kirschman, Jr., Director, and Lisa L. Donahue, Assistant Director, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington D.C. Of counsel were Jane K. Taylor, Office of the General Counsel, United States Department of Energy, and Alexis Echols, Adam Lyons, and Kelly Krystyniak, Trial Attorneys, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, D.C.

OPINION AND ORDER

LETTOW, Judge.

Plaintiff, Entergy Nuclear Generation Company (“Entergy”), is once again before this court seeking damages for the government’s partial breach of a contract for disposal of spent nuclear fuel generated at Entergy’s Pilgrim Nuclear Power Station in Plymouth, Massachusetts. This opinion is merely another chapter in the long history of both the litigation between these parties (and Entergy’s predecessor in privity, the Boston Edison Company)1 and the tortured

1 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 relationship between the Department of Energy (“DOE”) and the demands of the Nuclear Waste Policy Act of 1982, Pub. L. No. 97-425, 96 Stat. 2201 (codified in relevant part at 42 U.S.C. § 10222).2 Because that history has already been thoroughly documented, only its relevant aspects are restated here.

The Boston Edison Company entered into a contract with DOE in 1983 for the disposal of the spent nuclear fuel generated at its Pilgrim Nuclear Power Station. DOE breached the contract by not commencing disposal of the Pilgrim plant’s spent nuclear fuel by January 31, 1998. Boston Edison sold the Pilgrim plant to Entergy in July 1999, assigning Entergy the DOE contract. Boston Edison relied on the breach to assert a claim for diminution in value on the sale of Pilgrim to Entergy, and Entergy sued DOE to recoup the additional costs it incurred in operating the plant due to the breach. Boston Edison’s claim was deemed to be premature, see Boston Edison VI, 658 F.3d at 1367, but Entergy was awarded damages in 2012 for costs incurred through December 31, 2008, see Entergy Nuclear, 130 Fed. Cl. at 469-70 (relating the affirmance by the Federal Circuit of most of the damages awarded to Entergy and describing the subsequent stipulation between Entergy and the government with respect to a remanded issue of damages).

Entergy now returns to court seeking to recover $66,286,540 in damages allegedly incurred between December 31, 2008 and June 30, 2015. Pending before the court are the parties’ cross-motions for partial summary judgment under Rule 56 of the Court of Federal Claims (“RCFC”) and Entergy’s motion for partial final judgment under RCFC 54(b). These are pre-trial cross-motions; trial is scheduled to occur October 1 through 12, 2018.

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”), appeal dismissed, No. 13-5053 (Fed. Cir. Mar. 15, 2013); Entergy Nuclear Generation Company v. United States, 130 Fed. Cl. 466 (2017). 2 See Indiana Mich. Power Co. v. Department of Energy, 88 F.3d 1272, 1277 (D.C. Cir. 1996) (holding that the United States was obligated to meet the demands of the statue according to the statutorily mandated timeline); Northern States Power Co. v. United States Dep’t of Energy, 128 F.3d 754, 761 (D.C. Cir. 1997) (granting a petition for writ of mandamus because the government “ha[d] not abided by [the] prior conclusion [in Indiana Michigan Power]”); Nebraska Pub. Power Dist. v. United States, 590 F.3d 1357, 1376 (Fed. Cir. 2010) (en banc) (rejecting a challenge to the D.C. Circuit’s jurisdiction in Northern States); Entergy Nuclear FitzPatrick, LLC v. United States, 711 F.3d 1382, 1389 (Fed. Cir. 2013) (holding that the government was precluded from evading its obligations under the statute by claiming “unavoidable delays”); see also Boston Edison VI, 658 F.3d at 1364 (“The government has breached similar contractual undertakings nationwide, leading to numerous breach of contract actions.”).

2 BACKGROUND3

Under the Nuclear Waste Policy Act of 1982, Congress authorized DOE “to enter into contracts with any person who generates or holds title to . . . spent nuclear fuel . . . for the acceptance of title, subsequent transportation, and disposal of such . . . spent fuel.” 42 U.S.C. § 10222(a)(1). Generators or title holders who entered into contracts with DOE have had to pay a “fee per kilogram” of spent fuel to “the Treasury of the United States.” Id. § 10222(a)(3). “In paying such a fee, the person delivering spent fuel . . . to the Federal Government shall have no further financial obligation to the Federal Government for the long-term storage and permanent disposal of such spent fuel . . . .” Id. The statute standardizes aspects of these contracts, obligating DOE, “beginning not later than January 31, 1998, [to] dispose of the . . . spent nuclear fuel involved as provided in this subchapter.” Id. § 10222(a)(5).

Boston Edison entered into a one of these standard contracts (the “Standard Contract”) in 1983 for the disposal of the spent nuclear fuel generated at its Pilgrim plant in Plymouth, Massachusetts, and Boston Edison and then Entergy have since paid all of the required fees. See Am. Compl. ¶¶ 2, 11. Boston Edison sold the Pilgrim plant and assigned the Standard Contract to Entergy in July 1999. Am. Compl. ¶ 4. By this time, DOE was already in breach of the Standard Contract for failing to dispose of the spent nuclear fuel from the Pilgrim plant; DOE continues to delay fulfilling its statutory obligation and there is no indication that it will change its conduct in the foreseeable future. See Am. Compl.

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