EXC Exelon Corp

By Lisa Beilfuss 

Entergy Corp. said Wednesday that it is in talks to sell its FitzPatrick nuclear power plant -- an 838-megawatt facility it had flagged for sale or closure last year -- to Exelon Corp.

"The discussions with Exelon are consistent with Entergy's commitment to consider any viable option that would allow FitzPatrick to remain in operation," the company said.

The plant, located in upstate New York, produces enough electricity to power 800,000 homes, and it employs 615 workers. But it has been under pressure financially amid growing competition from power plants that burn natural gas to make less expensive electricity -- especially as energy prices remain sharply lower.

New York Governor Andrew Cuomo has been fighting to keep the plant open. After Entergy said in November that it would shutter the plant because of falling revenue, Mr. Cuomo said a closure "will devastate the lives of the more than 600 employees and their families," and that New York "will pursue every legal and regulatory avenue in an attempt to stop Entergy's actions."

Bill Mohl, the company's wholesale commodities president, said Wednesday that a transaction depends largely on the final terms and timeliness of the New York State Clean Energy Standard, the governor's push to ensure that 50% of New York's electricity comes from renewable energy resources by 2030. Mr. Cuomo announced the initiative at the end of last year.

Entergy said that if talks with Exelon fall through, it would proceed with its plans to shut the plant in January.

Entergy's decision to close or sell the FitzPatrick facility follows news that it would close its Pilgrim nuclear power plant in Massachusetts by mid-2019. The company has cited a more competitive environment and lower power prices for the moves, as well as regulatory challenges and public policies that it says disadvantage nuclear plants.

"Given the financial challenges our merchant power plants face from sustained wholesale power price declines and other unfavorable market conditions, we have been assessing each asset," Chief Executive Leo Denault said at the time.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

(END) Dow Jones Newswires

July 13, 2016 14:50 ET (18:50 GMT)

Exelon (NYSE:EXC)
Historical Stock Chart
From Mar 2024 to Apr 2024

Exelon (NYSE:EXC)
Historical Stock Chart
From Apr 2023 to Apr 2024