Independent Auditors' Report
The Stockholders and Board of Directors of
Vermont Yankee Nuclear Power Corporation:
We have audited the accompanying balance sheets of Vermont Yankee Nuclear Power Corporation (the "Company") as of
December 31, 2006 and 2005, and the related statements of income, stockholders' equity and cash flows for each of the years in
the three-year period ended December 31, 2006. These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit
also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vermont
Yankee Nuclear Power Corporation as of December 31, 2006 and 2005, and the results of its operations and its cash flows for
each of the years in the three-year period ended December 31, 2006, in conformity with U.S. generally accepted accounting