SCRIBA, N.Y., July 13, 2016
/PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today
that it is in discussions with Exelon Corporation (NYSE: EXC) for
the potential sale of the James A. FitzPatrick Nuclear Power Plant
in Scriba, NY.
The discussions with Exelon are consistent with Entergy's
commitment to consider any viable option that would allow
FitzPatrick to remain in operation. Entergy announced in
November 2015 that it planned to shut
down and decommission the FitzPatrick plant, later setting the
timing to cease operations as late January 2017.
"In keeping with our corporate strategy to move away from
merchant power and toward a pure-play utility, we are working with
Exelon to come to commercial terms on a sale transaction that
depends largely on the final terms and timeliness of the
New York State Clean Energy
Standard," said Entergy Wholesale Commodities President
Bill Mohl. "We thank New York Governor Andrew Cuomo for his leadership in promoting the
Clean Energy Standard, which provides incentives for financially
strapped nuclear power plants."
In addition to the Clean Energy Standard, any transaction
between Entergy and Exelon would be subject to completion of
definitive commercial agreements, including conditions, as well as
regulatory approvals.
If discussions between Entergy and Exelon do not result in an
agreement for the sale and transfer of ownership of FitzPatrick,
Entergy will move forward with its current plan to cease
operations, followed by decommissioning.
"Our focus remains on providing employees and the community the
best opportunity we can to prepare for either a transition to a new
owner or a shutdown and decommissioning," said Brian Sullivan, site vice president and
Entergy's top official at FitzPatrick.
Entergy's discussions with Exelon provide the opportunity for a
potentially different outcome for FitzPatrick, and therefore
require the plant to proceed along two parallel paths: preparing
for the plant's permanent shutdown and decommissioning under the
current plan, while also preparing for a possible refueling and
continued operation in the event of a sale.
Negotiations with Exelon are ongoing, with a target for
completion in mid-August, therefore Entergy said it cannot yet
describe the material terms of any definitive agreement that it may
enter into with Exelon.
About FitzPatrick and Entergy
The FitzPatrick Nuclear
Power Plant generates 838 megawatts of nearly carbon-free
electricity, enough to power more than 800,000 homes. Additional
information regarding today's announcement is available at
www.entergy.com and www.FitzPatrickPower.com/Operational-Update.
Entergy Corporation is an integrated energy company engaged
primarily in electric power production and retail distribution
operations. Entergy owns and operates power plants with
approximately 30,000 megawatts of electric generating capacity,
including nearly 10,000 megawatts of nuclear power. Entergy
delivers electricity to 2.8 million utility customers in
Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of
approximately $11.5 billion and more
than 13,000 employees.
Cautionary Note Regarding Forward-Looking
Statements
In this news release, and from time to
time, Entergy Corporation makes certain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements include, among
other things, Entergy's plans and expectations with respect to a
potential sale of FitzPatrick or the future operations of the
plant, and other statements of Entergy's plans, beliefs or
expectations included in this news release. Except to the extent
required by the federal securities laws, Entergy undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Forward-looking statements are subject to a number of risks,
uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied in such
forward-looking statements, including (a) those factors discussed
elsewhere in this news release and in Entergy's most recent Annual
Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q
and Entergy's other reports and filings made under the Securities
Exchange Act of 1934; (b) nuclear plant operating and regulatory
risks; (c) legislative and regulatory actions and risks and
uncertainties associated with claims or litigation by or against
Entergy and its subsidiaries; (d) risks and uncertainties
associated with strategic transactions that Entergy or its
subsidiaries may undertake, including the risk that any such
transaction may not be completed as and when expected and the risk
that the anticipated benefits of the transaction may not be
realized and (e) economic conditions and conditions in commodity
and capital markets during the periods covered by the
forward-looking statements.
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SOURCE Entergy Corporation