Exelon to Buy New York Nuclear Plant From Entergy
August 09 2016 - 10:40AM
Dow Jones News
By Austen Hufford
Exelon Generation agreed to buy a nuclear power plant that
Entergy Corp. had slated to close after subsidies were approved by
New York state regulators to keep it open.
Exelon is buying the 838-megawatt FitzPatrick Nuclear Power
Plant in Scriba, N.Y., for about $110 million.
Last week, the New York State Public Service Commission approved
energy standards that requires 50% of New York's electricity to
come from renewable energy sources by 2030. The plan also requires
electricity suppliers to purchase zero-emission credits that help
subsidize New York's nuclear power plants.
Entergy notified the U.S. Nuclear Regulatory Commission in March
that it planned to close the plant on Jan. 27, 2017, and said in
July that it was in discussions to sell the plant.
The plant produces enough electricity to power 800,000 homes,
and it employs about 600 workers. Exelon said it intends to refuel
the plant in January 2017 and does not anticipate staffing level
changes.
The New York Power Authority will transfer the decommissioning
trust fund and liability for FitzPatrick to Entergy, and if the
deal closes, Exelon would then take control of them. FitzPatrick
was opened in 1975.
The deal is contingent on regulatory review and approval by
various government agencies including the U.S. Justice Department,
the Nuclear Regulatory Commission, the Federal Energy Regulatory
Commission and the New York State Public Service Commission.
Exelon shares rose 0.8% as Entergy shares rose 0.2% in morning
trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
August 09, 2016 11:25 ET (15:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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