Entergy Completes Sale of Indian Point Energy Center to Holtec
Entergy Corporation (NYSE: ETR) has successfully completed the sale of the Indian Point Energy Center to a subsidiary of Holtec International, aiming to expedite decommissioning activities by decades. The facility's final operating unit, Unit 3, was shut down on April 30, 2021, after 45 years of operation. This sale follows regulatory approvals from the U.S. Nuclear Regulatory Commission and the New York State Public Service Commission. Entergy is transitioning away from nuclear operations, with plans for further divestments.
- Successful completion of Indian Point Energy Center sale to Holtec, expediting decommissioning.
- Regulatory approvals received from both U.S. Nuclear Regulatory Commission and New York State Public Service Commission.
- Transitioning away from nuclear operations may impact future revenue streams.
BUCHANAN, N.Y., May 28, 2021 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) today completed the sale of the subsidiaries that own Indian Point Energy Center to a Holtec International subsidiary, which plans to complete major decommissioning activities at the site decades sooner than if Entergy had continued to own the facility. The final operating unit at the site, Unit 3, was shut down by Entergy on April 30, 2021, after generating electricity safely and reliably for the last 45 years.
Indian Point Unit 1 was shut down in 1974. Indian Point Unit 2 was shut down in April 2020.
Entergy and Holtec announced the Indian Point sale in April 2019. The U.S. Nuclear Regulatory Commission approved the transfer of Indian Point's licenses to Holtec in November 2020 and the New York State Public Service Commission approved the transfer on May 19, 2021. The agencies found that Holtec possesses the required technical and financial qualifications to own and decommission Indian Point safely and in accordance with regulatory requirements.
"We thank all our employees at Indian Point for operating a safe, secure and reliable plant for more than 20 years under Entergy's ownership, and we look forward to many of them continuing on with Entergy at new locations," said Entergy chairman and CEO Leo Denault. "With our previously announced agreement for the post-shutdown sale of Palisades nuclear power plant in 2022, we remain on track to complete our exit from nuclear power operations in merchant markets."
"Protecting public health and safety and the environment is the foundation upon which the Indian Point decommissioning program will be carried out," said Holtec's president and CEO Dr. Kris Singh. "The cutting-edge technologies that we have employed at Pilgrim and Oyster Creek to ensure maximum worker and environmental safety and wellbeing of the local communities will be employed at Indian Point to secure the same excellent outcomes that we continue to achieve at other plants in our fleet. We are committed to a continuous engagement with the stakeholders at the local and state levels to ensure a smooth dissemination of information at all times."
About Entergy Corporation
Entergy Corporation is an integrated energy company engaged in electric power production, transmission and retail distribution operations. Entergy delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy owns and operates one of the cleanest large-scale U.S. power generating fleets with approximately 30,000 megawatts of electric generating capacity, including 7,000 megawatts of nuclear power. Headquartered in New Orleans, Louisiana, Entergy has annual revenues of
Entergy owns and operates five nuclear power units in its regulated utility business, and is committed to the continued operation of its nuclear fleet in those locations. Its nuclear power plants in those markets are located in Louisiana, Arkansas and Mississippi, and have more than 5,000 megawatts of clean, reliable, and economic electricity generating capacity for customers in those regions.
Entergy currently owns one remaining merchant nuclear power plant, Palisades Power Plant, in Michigan, which is scheduled to permanently shut down in the spring 2022. Entergy previously announced plans to sell Palisades to Holtec International for decommissioning following its shutdown.
About Holtec International
Holtec International is a privately held technology company with operation centers in Florida, New Jersey, Ohio, and Pennsylvania in the U.S., and globally in Brazil, Canada, India, Japan, Mexico, South Africa, Spain, U.K., and Ukraine. Since the 1980s, Holtec has played a preeminent role in the industry by expanding the wet spent fuel storage capacity at over 110 reactor units worldwide. Over 130 global nuclear units rely on Holtec's technology for spent fuel storage and transportation. Holtec develops and implements innovative solutions to overcome technical challenges faced by its clients around the world. HI-STORE, the world's first below-ground Consolidated Interim Storage Facility, is currently undergoing licensing for deployment in New Mexico. Holtec's SMR-160, a 160-Megawatt small modular reactor, will provide safe, secure, dependable, affordable, and carbon-free power even in the world's most arid regions. Holtec is also dedicated to the safe and efficient decommissioning of shuttered nuclear plants. Holtec's approach to decommissioning is to begin and complete the physical work of decontamination and dismantlement decades sooner than if the current nuclear plant owner retains ownership of the plant. As a major supplier of special-purpose pressure vessels and critical-service heat exchange equipment, Holtec provides air-cooled condensers, steam generators, feedwater heaters, and water-cooled condensers. As a fully integrated supplier, Holtec possesses in-house capabilities to design, engineer, analyze, license, fabricate and construct these technologies.
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 its planned exit from the merchant nuclear power business, and other statements of Entergy's plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of 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) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with executing on business strategies, including strategic transactions that Entergy or its subsidiaries may undertake and 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; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of changes in commodity markets, capital markets, or economic conditions; (j) impacts from a terrorist attack, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; (k) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers; and (l) the effects of technological change, including the costs, pace of development and commercialization of new and emerging technologies.
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SOURCE Entergy Corporation
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