Vermont Yankee Nuclear Power Corp. v. United States

73 Fed. Cl. 236, 2006 U.S. Claims LEXIS 310, 2006 WL 2988162
CourtUnited States Court of Federal Claims
DecidedOctober 19, 2006
DocketNos. 02-898C, 03-2663C
StatusPublished
Cited by10 cases

This text of 73 Fed. Cl. 236 (Vermont Yankee Nuclear Power Corp. 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
Vermont Yankee Nuclear Power Corp. v. United States, 73 Fed. Cl. 236, 2006 U.S. Claims LEXIS 310, 2006 WL 2988162 (uscfc 2006).

Opinion

OPINION AND ORDER

WHEELER, Judge.

These cases concern Defendant’s potential liability for damages associated with spent nuclear fuel (“SNF”) generated at the Vermont Yankee Nuclear Power Station (“Power Station”) in Vernon, Vermont. Plaintiff Vermont Yankee Nuclear Power Corporation (“Vermont Yankee”) formerly owned and operated the Power Station, but sold it in 2002 to Plaintiff Entergy Nuclear Vermont Yankee, LLC, et al. (“ENVY”). These actions stem from the failure of the Department of Energy (“DOE”) to begin disposing of SNF at the nation’s nuclear power plants not later than January 31, 1998, as agreed under DOE’s Standard Contract. Pursuant to the Court’s August 15, 2006 Order, these cases are consolidated for purposes of this opinion.

At issue in each case are two motions for summary judgment filed by Defendant on May 4, 2006. The first motion concerns the validity of certain assignments made by Vermont Yankee to ENVY during the sale of the Power Station. The second motion concerns Vermont Yankee’s failure to pay a one-time fee which Defendant regards as a condition precedent to DOE’s obligation to accept SNF from the Power Station. Plaintiffs have opposed both motions, and have cross-moved for summary judgment on liability. For the reasons stated below, both of Defendant’s motions are without merit, and therefore are DENIED. Plaintiffs’ cross-motions for summary judgment on liability are GRANTED. The Court will address each motion in turn, applying the standards applicable to motions for summary judgment.

Factual Background2

On June 10, 1983, Vermont Yankee and DOE signed a Standard Contract addressing [238]*238the disposal of SNF and high-level radioactive waste (“HLW”) derived from operations at the Power Station. In exchange for payment of substantial fees, DOE agreed that it would begin disposing of SNF from nuclear waste producers not later than January 31, 1998. Through passage of the Nuclear Waste Policy Act of 1982 (“NWPA”), Pub.L. No. 97-425, 96 Stat. 2201 (codified at 42 U.S.C. § 10101-10270), Congress required all domestic nuclear utilities to enter into Standard Contracts as a condition for renewal of their operating licenses. 42 U.S.C. §§ 10222(a), (b); see Maine Yankee Atomic Power Co. v. United States, 225 F.3d 1336, 1337 (Fed.Cir.2000). DOE published the terms of the Standard Contract in 10 C.F.R. § 961.11. DOE did not commence performance by January 31, 1998, as agreed, and it still has not begun to date. Under varying legal theories — partial breach of contract, breach of the implied covenant of good faith and fair dealing, and Fifth Amendment taking without just compensation — Plaintiffs claim that the delay in DOE’s performance has resulted in significant damages.

Under the Standard Contract, contract holders such as Vermont Yankee are required to pay two sets of fees. One of the fees is a continuing quarterly fee determined by reference to the amount of electricity that the utility generates and sells. This fee accrues through the life of the Standard Contract as long as the utility continues to generate electricity. The other fee is a one-time fee intended to cover the SNF that utilities already possessed when they signed Standard Contracts in 1983. The amount of the one-time fee is determined by reference to a formula contained in the NWPA, 42 U.S.C. § 10222(a)(3).

Contract holders, including Vermont Yankee, were required within two years after contract execution to elect one of three options for payment of the one-time fee. One option required the utility to pay the fee immediately, a second option allowed the utility to defer its payment until a date prior to the date that DOE was first to accept SNF from that utility, and a third option allowed the utility to make 40 quarterly pro rata payments of the fee, with the final payment due before the first date of DOE’s acceptance of the utility’s SNF. (Standard Contract, Article VIII). Under the second option, the amount due would accrue interest from April 7, 1983 to the date of payment. Id. By letter dated June 5, 1983, Vermont Yankee elected to pay its one-time fee under the second option. According to Defendant, Vermont Yankee’s one-time fee was $39,284,623.69, which, with interest, has grown to $128,724,683 as of December 31, 2005. To date, Vermont Yankee has not paid its one-time fee.

Vermont Yankee sold the Power Station to ENVY on July 31, 2002, and with it, transferred its title to the Power Station’s SNF to ENVY. As addressed in the “Assignment” discussion below, Vermont Yankee assigned certain rights and duties under the Standard Contract to ENVY, and retained others. Defendant asserts in its motions for summary judgment that Vermont Yankee’s allegedly invalid assignment, and Vermont Yankee’s failure to pay the one-time fee, legally bar Plaintiffs from recovering damages for partial breach of contract.

Discussion

I. Standard for Decision

Summary judgment is appropriate when there are no genuine issues of material fact in dispute, and the moving party is entitled to judgment as a matter of law. RCFC 56(c). “Material” facts are those that have the potential to significantly affect the outcome of the case. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A dispute in this context is “genuine” when a reasonable trier of fact could find in favor of the non-moving party based on the evidence presented. Id. at 248, 106 S.Ct. 2505. The party moving for summary judgment bears the initial burden of demonstrating the absence of genuine issues of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). In reviewing the evi[239]*239dence, the Court resolves all factual doubts and draws all justifiable inferences in favor of the non-movant. See Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587-88, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986); Anderson, 477 U.S. at 255, 106 S.Ct. 2505. With cross-motions for summary judgment, the Court evaluates each motion on its own merits and resolves all doubts and inferences against the party whose motion is being considered. Tenn. Valley Authority v. United States, 60 Fed.Cl. 665, 670 (2004) (citing Mingus Constructors, Inc. v. United States, 812 F.2d 1387, 1390-91 (Fed.Cir. 1987)).

II. Vermont Yankee’s Assignments

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Bluebook (online)
73 Fed. Cl. 236, 2006 U.S. Claims LEXIS 310, 2006 WL 2988162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vermont-yankee-nuclear-power-corp-v-united-states-uscfc-2006.