In a surprise announcement late this past Friday Entergy of Louisiana released a statement announcing that ownership of Vermont Yankee would be transferred to a newly created entity. In an unusual move Entergy has resurrected a previous plan that had been abandoned years ago. The new version is still to shift Vermont Yankee’s ownership to a small shell corporation, but now it has an innovative funding twist.  

A spokesman explained:

the new corporation, dubbed  Enexus EB-5 would, as the name implies,become an aggressive participant and seek investment “partners” through the federal EB-5 program. As part of the restructuring Vermont Yankee’s new owner Enexus EB-5 will immediately be officially classified under federal EB-5 as a “troubled business”.

This federal classification would enable the new company to tap into the growing rush for EB-5 money from foreign investors. Any foreign investor can put up $500,000 or more in an approved project that creates or preserves at least ten jobs. After two years the foreign investor receives a green card and US citizenship.  

Entergy claims this funding source will put to rest fears that the spin-off could be woefully under-capitalized and unable to meet burgeoning decommissioning obligations. Longtime VY opponents say that Entergy, under the earlier plan, could leave Vermont “holding the bag” for the aging plant’s decommissioning costs by transferring ownership and clean-up related liability to Enexus EB-5.

Vermont State officials expressed displeasure that they had no advance warning of Friday’s announcement. As luck would have it, and in a touch of irony Governor Shumlin, along with Jay Peak owner and EB-5 promoter Bill Stenger, are currently in Miami Florida to attend the National EB-5 Finance Seminar. Unofficially known as the Do your Business in the Sun Tour, this event is sponsored by the International EB-5 Investment Group (IEBIG) an industry trade group composed of dozens of investment bankers and immigration lawyers.

When contacted by phone one high level state office holder- a longtime opponent of Vermont Yankee – off the record expressed caution over the willingness of foreign investors to support an aging nuclear power plant – even for a green card immigration visa.  However, the same high level state office holder volunteered the following enthusiastic support for any utilization of the EB-5 program,

“It [EB-5 funding ]beats going for the highest building I could possibly find and jumping off”.

Asked for comment, some Vermont’s business community leaders, expressed admiration at Entergy’s innovative use of the increasingly versatile federal EB-5 program. This local support may indicate Entergy’s revived outreach and campaign style listening tour with state business leaders may start to pay dividends. Two websites,YesEEB-5VY.com and IamVYEnexusEB-5.com are currently in operation as part of the charm offensive. This overdue attempt to come to terms with Vermont’s social and political culture notably included a week long winter-time retreat by Entergy Louisiana executives at Jay Peak. This past winter the executives reportedly enjoyed “real”Vermont by skiing, touring a local brew pub, staying at a state of the art resort hotel and visiting an indoor water park.  

Foreign investors seeking green cards now have an expanding range of investment options here in the Green Mountain State. More than living up to its “quirky” image, Vermont offers green card- visa- seeking-foreign-investors opportunities in everything from brew pubs, artificial organ manufacturing, elegant retirement villages, to water theme parks. Now a “vintage” nuclear power plant has been added to the portfolio of Vermont’s unique EB-5 investment opportunities.