Vermont and PowerTransitions Collaborate on Future for Vermont Yankee Site

PowerTransitions is considering various potential developments for the Vermont Yankee site, including a data center, a small modular nuclear reactor, or a battery storage facility.

Vernon and the state of Vermont are progressing towards establishing a letter of intent with PowerTransitions, a Texas-based energy company, to outline the framework for upcoming developments at the Vermont Yankee location. This document will also detail how the public can engage in the process.

Kerrick Johnson, the commissioner of the Department of Public Service, clarified that Vermont holds the first option on the 140-acre site, contrary to previous assumptions about PowerTransitions' exclusive rights to it. He noted that PowerTransitions had entered into a lease and agreement for first refusal with NorthStar Group Services Inc., the current site owner, without informing state officials. Johnson acknowledged that he was made aware of the state's rights when Representative Laura Sibilia reminded him of a memorandum from 2018 that affirmed the state's option during the sale of the site to Entergy Nuclear.

Since the initial news of PowerTransitions' interest, communications between the state and the company have reportedly been positive. A spokesperson from PowerTransitions indicated that the company is in the early phases of development and prioritizes collaboration with the Vernon community and other stakeholders.

PowerTransitions, a firm focused on revitalizing former utility sites, is considering various potential developments for the Vermont Yankee site, including a data center, a small modular nuclear reactor, or a battery storage facility. The company has broad experience in such projects and is currently working on a similar initiative in Kansas City.

Johnson emphasized the importance of integrating the town's interests into the redevelopment plans. He expressed concern about the need to optimize the large power transmission station nearby, which he referred to as a significant asset for Vermont's energy needs. He also mentioned the vital role the site plays in enhancing the power grid for New England, where there is an ongoing demand for increased power resources.

With the decommissioning process of Vermont Yankee ongoing and anticipated to be completed by 2026, Johnson noted that discussions regarding the site’s future remain preliminary. The Nuclear Regulatory Commission will need to evaluate the completed work before the site can be considered for new uses, and there is currently no timeline in place for their decision.

Recently, during a Vernon Select Board meeting, it was observed that PowerTransitions had not yet filed any formal proposals with the town, although informal discussions have been taking place. The conversation also touched on concerns regarding a specific property option that PowerTransitions holds and the implications of establishing a data center at this location.

In a separate comment, NorthStar's CEO conveyed regret for the inconveniences faced by another buyer who invested in preliminary inspections prior to the resolution of the rights of first refusal with PowerTransitions. He also reiterated the company's commitment to prioritize the preferences of the Vernon community in future redevelopment efforts.

It should be noted that any future projects would need to comply with either the state’s Act 250 land use law or the Section 248 utility expansion law. Meanwhile, the current administration has demonstrated a continued interest in nuclear energy, influencing legislative discussions related to oversight and data centers in Vermont.

NorthStar Group Services, which acquired the Vermont Yankee site along with its decommissioning fund in 2019, has been effectively managing the demolition and waste shipping processes ahead of schedule, though the site will continue to store significant amounts of radioactive waste until a permanent solution is established.