Entergy Unit and Acadia Power Partners Reach Agreement for Purchase of Acadia Unit 2
October 30 2009 - 4:47PM
PR Newswire (US)
NEW ORLEANS, Oct. 30 /PRNewswire-FirstCall/ -- Entergy Corporation
(NYSE: ETR) announced that its subsidiary, Entergy Louisiana, LLC
(ELL), has signed a Purchase and Sale Agreement (PSA) to acquire
Unit 2 of the Acadia Energy Center, a 580-megawatt generating unit
located near Eunice, Louisiana, from Acadia Power Partners, LLC
(APP), an independent power producer. "The acquisition of a modern,
highly efficient load-following generation resource such as Acadia
Unit 2 will help meet the electricity needs of our utilities'
customers while lowering fuel costs," said J. Wayne Leonard,
Entergy's chairman and chief executive officer. "This transaction
is well-aligned with our disciplined, market point of view for
capital deployment. In addition, the facility's location in
southern Louisiana has substantial reliability benefits for the
system and our customers." The Acadia Energy Center, which entered
commercial service in 2002, consists of two Siemens-Westinghouse
combined-cycle gas-fired generating units, each nominally rated at
580 MW. ELL proposes to acquire 100 percent of Acadia Unit 2 and a
50 percent ownership interest in the facility's common assets. In a
separate transaction entered into earlier this year, Cleco Power is
acquiring Acadia Unit 1 and the other 50 percent interest in the
facility's common assets. Upon closing the transaction, Cleco Power
will serve as operator for the entire facility. ELL has committed
to sell one third of the output of Unit 2 to Entergy Gulf States
Louisiana in accordance with terms and conditions detailed under
the existing System Agreement. ELL's purchase is contingent upon,
among other things, obtaining necessary approvals, including full
cost recovery, from various federal and state regulatory and
permitting agencies and the filing of notification under the
Hart-Scott-Rodino antitrust law. Closing is expected to occur in
late 2010 or early 2011. ELL and APP also have entered into a Power
Purchase Agreement (PPA) for 100 percent of the output of Acadia
Unit 2 that will commence on May 1, 2010 and is set to expire at
the closing of the acquisition transaction. 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, and it is the second-largest nuclear
generator in the United States. Entergy delivers electricity to 2.7
million utility customers in Arkansas, Louisiana, Mississippi and
Texas. Entergy has annual revenues of more than $13 billion and
approximately 14,700 employees. Entergy's online address is
http://www.entergy.com/ 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. 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 involve a number of risks and
uncertainties. There are factors that could cause actual results to
differ materially from those expressed or implied in the
forward-looking statements, including (a) those factors discussed
in (i) Entergy's Form 10-K for the year ended December 31, 2008,
(ii) Entergy's Form 10-Q for the quarters ended March 31 and June
30, 2009, and (iii) Entergy's other reports and filings made under
the Securities Exchange Act of 1934, (b) the uncertainties
associated with efforts to remediate the effects of Hurricanes
Gustav and Ike and the January 2009 Arkansas ice storm and recovery
of costs associated with restoration, and (c) the following
transactional factors (in addition to others described elsewhere in
this news release and in subsequent securities filings): (i) risks
inherent in the contemplated spin-off, joint venture and related
transactions (including the level of debt to be incurred by Enexus
Energy Corporation and the terms and costs related thereto), (ii)
legislative and regulatory actions, and (iii) conditions of the
capital markets during the periods covered by the forward-looking
statements. Entergy cannot provide any assurances that the spin-off
or any of the proposed transactions related thereto will be
completed, nor can it give assurances as to the terms on which such
transactions will be consummated. The transaction is subject to
certain conditions precedent, including regulatory approvals and
the final approval by the Board of Directors of Entergy.
DATASOURCE: Entergy Corporation CONTACT: News Media, Chanel
Lagarde, +1-504-840-2599, , or Investor Relations, Michele
Lopiccolo, +1-504-576-4879, , both of Entergy Corporation Web Site:
http://www.entergy.com/
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