Entergy in Talks to Sell New York Nuclear Plant to Exelon -- 2nd Update
July 13 2016 - 3:05PM
Dow Jones News
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)
Copyright (c) 2016 Dow Jones & Company, Inc.
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