Dominion Energy Kewaunee, Inc. Submits Post-Hearing Brief for Approval of Stock Transfer

Strategic Insights -

Dominion Energy Kewaunee, Inc. and Dominion Nuclear Projects, Inc. have submitted an initial post-hearing brief to the Public Service Commission of Wisconsin, requesting approval for the transfer of Dominion Energy Kewaunee, Inc.'s stock to EnergySolutions, LLC. The proposed sale is part of a plan to decommission the Kewaunee Power Station ("KPS") on an accelerated basis. The brief details the company's efforts to address concerns raised by the Commission in 2004 regarding the transfer of ownership from fully regulated public utilities to a wholesale merchant power generator. The Proffered Conditions, which were agreed upon in 2005, aim to ensure that the Kewaunee Power Station is decommissioned safely and responsibly. The Commission's approval is crucial for the Stock Transfer to proceed, as it will allow EnergySolutions, a technically qualified and financially stable nuclear decommissioning company, to take full control of Dominion Energy Kewaunee, Inc. and undertake the decommissioning process.

Key Takeaways:

  • The Commission's 2004 approval of the Utilities' sale of KPS to Dominion Energy Kewaunee, Inc. was heavily litigated, with some stakeholders opposing the sale due to concerns about jurisdictional loss.
  • The Proffered Conditions, agreed upon in 2005, address the Commission's concerns, but stop short of submitting Dominion to full Commission regulation.
  • The proposed Stock Transfer to EnergySolutions will allow for the decommissioning of KPS on an accelerated basis, ensuring a safe and responsible process.
  • Dominion has no incentive or plans to decommission KPS sooner than the current NRC possession-only license expires in 2073.
  • EnergySolutions has the financial capability, technical ability, and experience to decommission KPS, required by Proffered Condition 4.
  • Dominion conveyed the terms of the Stock Transfer to the Utilities, who reasonably and prudently chose not to exercise their right of first refusal, as required by Proffered Condition 8.
  • EnergySolutions has certified its consent to be bound by all of the Proffered Conditions, as required by Proffered Condition 11 and the Bona Fide Offer under the ROFR.

Statistics:

  • In 2005, the Commission approved the Utilities' sale of KPS to Dominion Energy Kewaunee, Inc. subject to twelve Proffered Conditions.
  • The Proffered Conditions aim to ensure a safe and responsible decommissioning process, including transferring risks from utilities and customers to Dominion.
  • By 2012, Dominion was experiencing economic pressures, leading to the permanent cessation of power operations at KPS in May 2013.
  • KPS has been in static decommissioning status since 2013, with no significant physical decommissioning activities occurring.
  • The current U.S. Nuclear Regulatory Commission ("NRC") possession-only license expires in 2073.
  • EnergySolutions, a technically qualified and financially stable nuclear decommissioning company, has proposed a plan to take full control of Dominion Energy Kewaunee, Inc. and undertake the decommissioning process on an accelerated basis.
  • The Stock Purchase Agreement to transfer Dominion Energy Kewaunee, Inc.'s stock to EnergySolutions was anticipated to be approved by the NRC in February 2022, but is now expected to be issued in April 2022.

Sources:

  • [1] In re Application for All Approvals Necessary for the Transfer of Ownership and Operational Control of the Kewaunee Nuclear Power Plant from Wisconsin Public Service Corporation and Wisconsin Power and Light Company to Dominion Energy Kewaunee, Inc., No. 05-EI-136 (Wis. P.S.C. Dec. 16, 2004)
  • [2] In re Application for All Approvals Necessary for the Transfer of Ownership and Operational Control of the Kewaunee Nuclear Power Plant from Wisconsin Public Service Corporation and Wisconsin Power and Light Company to Dominion Energy Kewaunee, Inc., No. 05-EI-136 (Wis. P.S.C. Apr. 21, 2005)
  • [3] In re Application for All Approvals Necessary for the Transfer of Ownership and Operational Control of the Kewaunee Nuclear Power Plant from Wisconsin Public Service Corporation and Wisconsin Power and Light Company to Dominion Energy Kewaunee, Inc., No. 05-EI-136 (Wis. P.S.C. Jan. 21, 2005)
  • [4] In re Application for All Approvals Necessary for the Transfer of Ownership and Operational Control of the Kewaunee Nuclear Power Plant from Wisconsin Public Service Corporation and Wisconsin Power and Light Company to Dominion Energy Kewaunee, Inc., No. 05-EI-136 (Wis. P.S.C. Apr. 21, 2005)
  • [5] Rebuttal-Dominion-Avram-19