(Host) The Vermont Yankee nuclear plant has cut its power output because of a leak in one of its cooling towers.

The mishap comes as state regulators began a review this week into whether the plant should operate for another 20 years.

VPR's John Dillon reports:

(Dillon) The hearing at the Public Service Board offered a preview of Yankee's case. And it boils down to money.

The owners of Vermont Yankee make the economic argument that what's good for the company is good for the state of Vermont.

They point to a profit sharing deal that could bring $750 million to Vermont utilities over 10 years. Entergy - the Louisiana company that owns the Vernon plant - wants the Public Service Board to count those dollars as part of Yankee's economic benefit to the state

John Marshall represents Entergy before the Public Service Board.

(Marshall) ``As you review the testimony you're aware that the memorandum of agreement that was approved in 2002 involves a power sharing agreement that is not linked to a power purchasing agreement, and is something that has value, probably far more than people thought in 2002.''

(Dillon) Vermont utilities say they would use the money to reduce power costs for customers.

But critics say the state shouldn't be banking on an aging nuclear plant. James Moore is with the Vermont Public Interest Research Group. He says the $750 million Yankee profit sharing deal amounts to about $4 a month savings for consumers over 20 years. Moore questions the plant's continued safety and reliability.

(Moore) ``The short term bribe of you can save a few dollars a month in your electricity bill is far outweighed by the cost that we would be passing on to future generations of Vermonters in nuclear waste, in cleanup, and in risk association with running one of the oldest reactors in the country.''

(Dillon) A cooling tower at Vermont Yankee collapsed last summer, an accident that prompted increased scrutiny of the plant.

State officials are monitoring the latest cooling tower leak. Steve Wark of the Department of Public Service said Yankee had assured the state that any problems in the cooling system had been addressed.

(Wark) ``From the state's perspective, this is a huge disappointment. We're concerned that Vermont Yankee is dealing with a problem that was reported to have been resolved before. And while this is not a nuclear component, it does impact the operation of that plant, and it calls into question the system maintenance program. So, we'll be working very diligently to make sure we know what happened in this situation, and why.''

(Dillon) Yankee spokesman Rob Williams said the leak involves water from the Connecticut River - which is used to cool the plant.

Williams said the plant is operating at 47% to allow technicians to investigate the problem and make repairs. He said he did not know how long the plant will remain at reduced power levels.

For VPR News, I'm John Dillon.