Tags: Entergy | Nuclear | Unit | Spinoff | N.Y. | Hurdles

Entergy Scraps Nuclear Unit Spinoff Amid N.Y. Hurdles

Monday, 05 Apr 2010 01:40 PM

Entergy Corp. canceled the planned spinoff of several of its nuclear power plants after hitting regulatory hurdles in New York, and the utility owner said it would take more than $75 million in charges from the effort.

The company, the second-largest U.S. nuclear power plant operator, said it would unwind the business infrastructure associated with the spinoff and take a charge of 40 cents to 45 cents per share, or $75.7 million to $85.1 million.

Entergy had planned to spin off six reactors, including three in New York, into a new company called Enexus Energy Corp. The reactors, which are not owned by Entergy's utilities, are capable of generating 5,000 megawatts, enough to supply about 4 million households.

The move is the latest setback for Entergy Chief Executive Officer Wayne Leonard, whose regulatory woes tied to the northern nuclear operations come on top of turmoil with utility commissions in the four states where the company provides regulated electric service to 2.7 million customers.

A decade of complaints about power grid congestion led state regulators in Louisiana, Arkansas, Mississippi and Texas to form a special committee last year to oversee the company's grid planning.

New Orleans-based Entergy's plan to create the first stand-alone nuclear power company in the United States had faced significant hurdles, especially from regulators in New York. Also, state senators in Vermont voted in February to shut down a reactor in 2012 when its license expires after the discovery of a tritium leak.

On March 25, the New York Public Service Commission rejected Entergy's nuclear power plant spinoff proposal, saying the plan was not in the public interest.

New York's Department of Environmental Conservation on Friday denied a request to renew water quality certification at the company's Indian Point plant, setting back efforts for a 20-year renewal of its operating permit.

Separately, Entergy said its board had authorized an increase in its quarterly dividend to 83 cents per share from 75 cents, payable on June 1.

Shares of Entergy were down 2.1 percent at $80.59 in late morning trading.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
Companies
Entergy Corp. canceled the planned spinoff of several of its nuclear power plants after hitting regulatory hurdles in New York, and the utility owner said it would take more than $75 million in charges from the effort. The company, the second-largest U.S. nuclear power...
Entergy,Nuclear,Unit,Spinoff,N.Y.,Hurdles
341
2010-40-05
Monday, 05 Apr 2010 01:40 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved