PLYMOUTH, Mass., Aug. 26, 2019 /PRNewswire/ -- Entergy
Corporation (NYSE: ETR) today completed the sale of the subsidiary
that owns the Pilgrim Nuclear Power Station to a Holtec
International subsidiary, which plans to complete major
decommissioning activities at the site decades sooner than if
Entergy had continued to own the facility. Pilgrim was shut down
permanently by Entergy on May 31,
2019, after providing electricity safely to the region for
more than 46 years.
Entergy and Holtec announced the Pilgrim sale agreement in
August 2018, and the U.S. Nuclear
Regulatory Commission approved the transfer of Pilgrim's licenses
to Holtec on Aug. 22, 2019. In
its order, the NRC found that Holtec possesses the required
technical and financial qualifications to own and decommission
Pilgrim safely and in accordance with all NRC requirements. "The
successful Pilgrim transaction demonstrates continued progress on
Entergy's exit from merchant power markets," said Entergy Chairman
and CEO Leo Denault. "With our
previously-announced signed agreements for the post-shutdown sales
of Indian Point and Palisades nuclear power plants in 2021 and
2022, respectively, we remain on track to accomplish our exit
plan."
"Protecting public health, safety, and the environment is the
foundation upon which all Pilgrim decommissioning work will occur,"
said Holtec's President & CEO Dr. Kris
Singh. "We are committed to engaging with stakeholders at
the local and state levels to ensure a smooth flow of information
throughout the decommissioning process. The cutting-edge
technologies we use will ensure maximum safety for our employees
and communities and enable the site to be decommissioned decades
sooner than if Pilgrim had remained under Entergy's ownership."
The transaction closed on terms consistent with Entergy's
expectations and no contribution to the nuclear decommissioning
trust was required. For Entergy, the transaction will result in a
pre-tax book charge to earnings in an amount expected to be
consistent with its previous disclosures. The estimated charge will
be recorded in the third quarter 2019 and will be included in
Entergy Wholesale Commodities as-reported earnings.
Entergy owns and operates five nuclear power units in its
regulated utility business, and is committed to the continued
operation of those resources. The regulated utility's nuclear power
plants are located in Louisiana,
Arkansas and Mississippi, and have more than 5,000
megawatts of clean, reliable and economic electricity generating
capacity for customers in those regions.
About Pilgrim Nuclear Power Station and Entergy
The Pilgrim Nuclear Power Station currently employs about 230
people. Pilgrim began generating electricity in 1972 and was
permanently shut down on May 31,
2019. Entergy purchased the plant in 1999 from Boston
Edison. Additional information is available at
pilgrimpower.com.
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 9,000 megawatts of nuclear power. Entergy delivers
electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of
$11 billion and nearly 13,700
employees. Additional information is available at entergy.com.
About Holtec International
Holtec International is a privately held energy technology
company with operation centers in Florida, New
Jersey, Ohio and
Pennsylvania in the U.S., and
globally in Brazil, Dubai, India,
South Africa, Spain, U.K. and Ukraine. Holtec's principal business
concentration is in the nuclear power industry. Holtec has played a
preeminent role since the 1980s in expanding nuclear plants' wet
spent fuel storage capacity at over 110 reactor units in the U.S.
and abroad. Dry storage and transport of nuclear fuel is another
area in which Holtec is recognized as the foremost innovator and
industry leader with a dominant market share and an active market
presence at over 115 reactor units around the globe. Among the
Company's pioneering endeavors is the world's first below-ground
Consolidated Interim Storage Facility being developed in
New Mexico and a 160-Megawatt walk
away safe small modular reactor, SMR-160. The SMR-160 is developed
to bring cost competitive carbon-free energy to all corners of the
earth. Holtec is also a major supplier of special-purpose pressure
vessels and critical-service heat exchange equipment such as
air-cooled condensers, steam generators, feedwater heaters, and
water-cooled condensers. Virtually all products produced by the
company are built in its three large manufacturing plants in the
U.S. and one in India. Thanks to a
solid record of consistent profitability and steady growth since
its founding in 1986, Holtec has no history of any long-term debt
and enjoys a platinum credit rating from the financial markets.
Nearly 100 U.S. and international patents protect the Company's
intellectual property from predation by its global competitors and
lend predictable stability to its business base.
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 its planned exit from the
merchant nuclear power business, and other statements of Entergy's
plans, beliefs or expectations included in this news release.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which apply only as of the date of 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) uncertainties associated with (1) rate
proceedings, formula rate plans and other cost recovery mechanisms,
including the risk that costs may not be recoverable to the extent
anticipated by the utilities and (2) implementation of the
ratemaking effects of changes in law; (c) uncertainties associated
with efforts to remediate the effects of major storms and recover
related restoration costs; (d) risks associated with operating
nuclear facilities, including plant relicensing, operating and
regulatory costs and risks; (e) changes in decommissioning trust
fund values or earnings or in the timing or cost of decommissioning
Entergy's nuclear plant sites; (f) legislative and regulatory
actions and risks and uncertainties associated with claims or
litigation by or against Entergy and its subsidiaries; (g) 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; (h) effects of changes in federal, state or local laws
and regulations and other governmental actions or policies,
including changes in monetary, fiscal, tax, environmental or energy
policies; and (i) the effects of technological changes and changes
in commodity markets, capital markets or economic conditions; and
(j) impacts from a terrorist attack, cybersecurity threats, data
security breaches or other attempts to disrupt Entergy's business
or operations, and other catastrophic events.
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SOURCE Entergy Corporation