SCRIBA, N.Y., July 13, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today that it is in discussions with Exelon Corporation (NYSE: EXC) for the potential sale of the James A. FitzPatrick Nuclear Power Plant in Scriba, NY.
The discussions with Exelon are consistent with Entergy's commitment to consider any viable option that would allow FitzPatrick to remain in operation. Entergy announced in November 2015 that it planned to shut down and decommission the FitzPatrick plant, later setting the timing to cease operations as late January 2017.
"In keeping with our corporate strategy to move away from merchant power markets and toward a company operating exclusively as a utility in regulated markets, we are working with Exelon to come to commercial terms on a sale transaction that depends largely on the final terms and timeliness of the New York State Clean Energy Standard," said Entergy Wholesale Commodities President Bill Mohl. "We thank New York Gov. Andrew Cuomo for his leadership in promoting the Clean Energy Standard, which provides incentives for financially strapped nuclear power plants."
In addition to the Clean Energy Standard, any transaction between Entergy and Exelon would be subject to completion of definitive commercial agreements, as well as regulatory approvals.
If discussions between Entergy and Exelon do not result in an agreement for the sale and transfer of ownership of FitzPatrick, Entergy will move forward with its current plan to cease operations, followed by decommissioning.
"Our focus remains on providing employees and the community the best opportunity we can to prepare for either a transition to a new owner or a shutdown and decommissioning," said Brian Sullivan, site vice president and Entergy's top official at FitzPatrick.
Entergy's discussions with Exelon provide the opportunity for a potentially different outcome for FitzPatrick, and therefore require the plant to proceed along two parallel paths: preparing for the plant's permanent shutdown and decommissioning under the current plan, while also preparing for a possible refueling and continued operation in the event of a sale.
Negotiations with Exelon are ongoing, with a target for completion in mid-August, therefore Entergy said it cannot yet describe the material terms of any definitive agreement that it may enter into with Exelon.
About FitzPatrick and Entergy The FitzPatrick Nuclear Power Plant generates 838 megawatts of nearly carbon-free electricity, enough to power more than 800,000 homes. Additional information regarding today's announcement is available at www.entergy.com and www.FitzPatrickPower.com/Operational-Update.
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 nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
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 a potential sale of FitzPatrick or the future operations of the plant, and other statements of Entergy's plans, beliefs or expectations included in 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) nuclear plant operating and regulatory risks; (c) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (d) 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 and (e) economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements.