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 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.

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

Bill Mohl, the company's wholesale commodities president, said the discussions with Exelon are part of its strategy to move away from merchant power and toward becoming a pure-play utility. He said a transaction depends largely on the final terms and timeliness of the New York State Clean Energy Standard, a push in the state to ensure that 50% of New York's electricity comes from renewable energy resources by 2030. Governor Andrew 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.

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

(END) Dow Jones Newswires

July 13, 2016 09:39 ET (13:39 GMT)

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