Entergy in Talks to Sell FitzPatrick Nuclear Plant
July 13 2016 - 9:00AM
Dow Jones News
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 08:45 ET (12:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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