Entergy to Sell Indian Point Nuclear Plant
April 16 2019 - 8:18AM
Dow Jones News
By Kimberly Chin
Entergy Corp. (ETR) said that it would sell its Indian Point
Energy Center to Holtec International, after the company agreed to
a timeline to shut down the nuclear power units follow decades of
litigation with the state of New York over environmental and safety
concerns.
Entergy had agreed to shutdown the aging power plants by 2020
and 2021. The company said lower wholesale power prices were the
main reason behind its decision to shut down the units.
Holtec International has partnered with Comprehensive
Decommissioning International LLC a joint venture company of
Canada-based SNC-Lavalin Group Inc. to perform the decommissioning
of all three reactor units.
The sale will include the Buchanan, NY-based Indian Point Unit
1, 2 and 3, and will be effective after Unit 3 has been shut down
and permanently defueled. Under an agreement with New York state,
Entergy had scheduled to shut down Unit 2 and Unit 3 by April 30,
2020 and April 30, 2021. Indian Point Unit 1 was shutdown in
1974.
The transaction is slated for completion by the third quarter of
2021.
Though a timeline for the decommissioning hasn't been set,
Holtec said it plans to initiate the decommissioning sooner than
Entergy's timetable.
Holtec, which is a nuclear reactor equipment supplier, will
assume the licenses, spent fuel, decommissioning liabilities and
nuclear decommissioning trusts of the units, according to the
deal.
Entergy anticipates the deal will result in a loss from the
value of its nuclear decommissioning trusts, asset retirement
obligations, plant operations and taxes.
With the deal, Holtec will have six reactors at four nuclear
facilities and an independent fuel storage installation in
Michigan, New York, New Jersey and Massachusetts.
Indian Point Energy Center has two operating nuclear power
plants, Unit 2 and Unit 3, which generate about 2,000 megawatts of
electricity for homes, businesses, and public facilities around New
York City and Westchester County.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
April 16, 2019 09:03 ET (13:03 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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