State reaches deal with Vermont Yankee

The Vermont Department of Public Service has reached an agreement with the owners of the Vermont Yankee on its proposal to spin off the nuclear power plant to a new company called Enexus.

The Barre-Montpelier Times Argus reports that Thursday's announcement was a shift for the department, which had previously recommended that the deal be rejected.

The memorandum of understanding between the department, Entergy Vermont Nuclear and Enexus comes as regulators in Vermont and New York consider the corporate spin-off deal in which the new company would operate five other Entergy nuclear power plants.

State officials say the agreement provides key financial guarantees that the new company can safely and effectively operate Vermont Yankee.