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A federal judge has told the people of Vermont that a solemn contract between them and the reactor owner Entergy need not be honored.

The fight will almost certainly now go to the US Supreme Court. At stake is not only the future of atomic power, but the legitimacy of all deals signed between corporations and the public. Chief Justice John Roberts’ conservative court will soon decide whether a private corporation can sign what should be an enforceable contract with a public entity and then flat-out ignore it.

In 2003 Entergy made a deal with the state of Vermont. The Louisiana-based nuke speculator said that if it could buy and operate the decrepit Vermont Yankee reactor under certain terms and conditions, the company would then agree to shut it down if the state denied it a permit to continue. The drop dead date: March 21, 2012.

In the interim, VY has been found leaking radioactive tritium and much more into the ground and the nearby Connecticut River. Under oath, in public testimony, the company had denied that the pipes that leaked even existed.

One of Yankee’s cooling towers has also collapsed…just plain crumbled.

One of Yankee’s siblings—Fukushima One—has melted and exploded (VY is one of some two dozen Fukushima clones licensed in the US).

In the face of these events, the legislature, in partnership with Vermont’s governor, voted 26-4 to deny Entergy a permit to continue. But the company is determined to continue reaping huge profits on a 35-year-old reactor — long since amortized at public expense — with very cheap overhead based on slipshod operating techniques where safety always comes second. Along the way Entergy has also tried to stick Vermont Yankee into an underfunded corporate shell aimed at shielding it from all economic liabilities.