UPDATE 1-Entergy reduces Vermont Yankee reactor to fix leak

(Updates with company comment)

NEW YORK, June 24 (Reuters) - Entergy Corp (ETR.N) said it has reduced the 620-megawatt Vermont Yankee nuclear power station on Tuesday to locate and fix a leak of river water into the plant's condenser.

The unit was operating at about 41 percent early Wednesday down from about 95 percent early Tuesday, according to a U.S. Nuclear Regulatory Commission report.

Since early June, operators had been tracking indications of the leak. The company said in an email on Tuesday it started to prepare for the power reduction several weeks ago. The company said fixing a problem like this usually takes several days.

In addition to fixing the leak, workers will conduct other maintenance during the power reduction including replacement of equipment associated with recirculation pump controls and a sensor associated with a regulating valve in the feedwater system.

Vermont Yankee, which entered service in 1972, is located in Vernon in Windham County about 80 miles north of Hartford, Connecticut.

Entergy is waiting for the NRC Commissioners to decide on the company's application to extend the plant's original 40-year operating license for another 20 years. Entergy filed the application in January 2006.

It usually takes the NRC about 22 months (November 2007) to make a decision on renewal without a hearing and about 30 months (July 2008) with a hearing.

The NRC's Atomic Safety and Licensing Board (ASLB) held the hearing and recommended the NRC approve the license extension. The ASLB however wanted Entergy to perform additional analysis on the reactor vessel nozzles before the NRC granted the extension.

Entergy conducted that analysis even though the NRC staff objected to the ASLB request for additional analysis.

One MW powers about 1,000 homes in Vermont.

Entergy, of New Orleans, owns and operates about 30,000 MW of generating capacity, markets energy commodities, and transmits and distributes power to 2.7 million customers in Arkansas, Louisiana, Mississippi and Texas. (Reporting by Scott DiSavino; Editing by Marguerita Choy)