Entergy Agrees to Sell Indian Point Nuclear-Power Facility
April 16 2019 - 3:14PM
Dow Jones News
By Kimberly Chin
Entergy Corp. has reached a deal to sell a Westchester County,
N.Y., nuclear power plant that will be decommissioned.
The company said Tuesday it would sell its Indian Point Energy
Center, in Buchanan, N.Y., to Nuclear Asset Management Co., a
subsidiary of Holtec International.
Entergy had agreed to shut down the nuclear-power facility after
over a decade of environmental and safety litigation with New York
state.
Comprehensive Decommissioning International LLC, a joint venture
of SNC-Lavalin Group Inc. and Holtec, will dismantle all three
reactor units, the companies said Tuesday.
Indian Point Energy Center has two operating nuclear plants,
Unit 2 and Unit 3, which generate about 2,000 megawatts of
electricity for homes, businesses and public facilities in New York
City and Westchester County.
The sale includes Indian Point Units 1, 2 and 3. Indian Point
Unit 1 was shut down in 1974.
The companies expect the transaction to close by the third
quarter of 2021.
New Orleans-based Entergy said it would receive nominal cash
consideration for the Indian Point units.
"We are not disclosing the purchase price, as it is
business-sensitive at this time," the company said in a
statement.
Entergy expects the sale will result in an accounting loss based
on the difference between its investments in the operation and how
much money it recoups.
Under a previous agreement with New York state, Entergy is
scheduled to shut down Unit 2 and Unit 3 by April 30, 2020, and
April 30, 2021, respectively. The company has said lower wholesale
power prices were the main reason behind its decision to shut down
the units.
Though a new timeline for decommissioning hasn't been set,
Holtec International, a nuclear reactor equipment supplier, said it
plans to initiate the decommissioning sooner than under Entergy's
timetable.
The Holtec subsidiary will assume the licenses, spent fuel,
decommissioning liabilities and nuclear decommissioning trusts of
the units, according to details from the agreement.
With the deal, Holtec International's holdings will include six
reactors at four nuclear facilities and an independent
spent-fuel-storage installation.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
April 16, 2019 14:59 ET (18:59 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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