Tuesday, April 19, 2011

Entergy (ETR) Sues to Keep Nuclear Plant Open

Entergy (NYSE:ETR) has sued the state of Vermont over the proposed closure of its nuclear power plant after being granted a 20-year license extension from federal regulators.

This is an issue because Vermont has a law on the books which says both houses of its legislature have to give approval before a state license can be issued to continue operating.

The company is filing the suit on the basis the U.S. Supreme Court has ruled that states have no authority over the licensing of nuclear plants. Entergy also contends Vermont may be interfering with federal authority in regard to the regulation of wholesale power.

In what will be an interesting and enlightening battle, Entergy's suit sets up a legal confrontation over whether the state or federal government has the final say in nuclear plant licensing.

Entergy was trading at $66.90, gaining $0.93, or 1.41 percent, as of 1:17 PM EDT.

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