Entergy completes sale of Palisades Power Plant to Holtec

Rhea-AI Summary

Entergy has successfully completed the sale of the Palisades Power Plant to Holtec International, ensuring a safe decommissioning of the site. The plant, which ceased operations on May 20, 2022, was in service for over 50 years. This transaction also transfers the Big Rock Point site to Holtec and marks Entergy's exit from the nuclear merchant power business. The NRC approved the license transfer for decommissioning in December 2021, allowing Holtec to dismantle the facility by 2041, significantly faster than if Entergy retained ownership.

Positive

• Completion of Palisades sale enables focus on utility operations.
• Holtec's expedited decommissioning timeline (by 2041) benefits local community.

Negative

• Exit from nuclear merchant business may limit future revenue opportunities.
• Closure of Palisades may impact employees and local economy.

COVERT, Mich., June 28, 2022 /PRNewswire/ -- Entergy today completed the sale of the subsidiary that owns the Palisades Power Plant to Holtec International to ensure a safe and timely decommissioning of the nuclear site. Palisades was permanently shut down May 20, 2022, after generating safe, secure and reliable electricity for more than 50 years. The transaction will also transfer ownership of the decommissioned Big Rock Point site in Charlevoix, Michigan from Entergy to Holtec.

The sale of the Palisades plant completes Entergy's planned exit from the nuclear merchant power business, and follows the closure and sale of the Vermont Yankee, Pilgrim and Indian Point plants and the sale of the operating James A. Fitzpatrick plant.

"We thank the excellent employees of Palisades for their dedication to safe, secure and reliable operations and we look forward to many of them continuing on with Entergy at new locations within our utility service area," said Entergy Chairman and Chief Executive Officer Leo Denault. "We remain committed to our four nuclear power stations in Arkansas, Louisiana and Mississippi. The clean, carbon-free energy they produce is a key part of Entergy reaching its 2050 net-zero emissions commitment."

Entergy first announced the planned closure of Palisades in 2016 in accordance with its strategic business decision to focus on its utility operations in the Gulf South. The company believes nuclear power is essential to the nation's goals for mitigating the impact of climate change.

The U.S. Nuclear Regulatory Commission approved the transfer of the license of Palisades from Entergy to Holtec for purposes of decommissioning in December 2021. The federal agency determined that Holtec possesses the required technical and financial qualifications to own and decommission Palisades safely and in accordance with regulatory requirements.

"We are pleased to be acquiring these facilities to add to our growing decommissioning fleet. We are also pleased that the talented, knowledgeable, and hard-working team at Palisades is joining the Holtec team. These team members will continue to deploy the same cutting-edge technologies that we have employed at Indian Point, Pilgrim, and Oyster Creek to ensure maximum worker safety, protection of the environment, preservation of the well-being of the local community, and to build upon the excellence achieved at other plants in our fleet," said Mr. Kelly Trice, President of Holtec Decommissioning International.

Decommissioning Palisades

Holtec filings with the NRC detail its plans to complete the dismantling, decontamination, and remediation of Palisades to NRC standards by 2041, more than 40 years sooner than if Entergy continued to own the facility and selected the maximum 60-year NRC SAFSTOR option for decommissioning. A safe and timely decommissioning is welcomed news for the plant's community, which stands to benefit from potential site reuse.

About Entergy

Entergy (NYSE: ETR), a Fortune 500 company headquartered in New Orleans, powers life for 3 million customers through its operating companies across Arkansas, Louisiana, Mississippi and Texas. Entergy is creating a cleaner, more resilient energy future for everyone with our diverse power generation portfolio, including increasingly carbon-free energy sources. With roots in the Gulf South region for more than a century, Entergy is a recognized leader in corporate citizenship, delivering more than $100 million in economic benefits to local communities through philanthropy and advocacy efforts annually over the last several years. Our approximately 12,500 employees are dedicated to powering life today and for future generations. Learn more at entergy.com and follow @Entergy on social media. #WePowerLife

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 energy industry by developing and implementing innovative solutions to overcome technical challenges faced by its clients around the world. Pioneering the technology to expand the nuclear fuel storage capacity in the wet storage pools, Holtec has increased the storage capacity on average by over 50% at over 110 reactor units worldwide. Over 130 nuclear units worldwide rely on Holtec's technology for spent nuclear fuel storage and transportation; 70 of these are located in the U.S. Highlights of Holtec's core business focus also includes the safe and efficient decommissioning of shuttered nuclear plants; the current fleet includes Indian Point, Pilgrim and Oyster Creek. Holtec's decommissioning model includes the assumption of the entire plant including the spent nuclear fuel. 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. 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. 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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/entergy-completes-sale-of-palisades-power-plant-to-holtec-301577031.html

SOURCE Entergy Corporation

FAQ

What did Entergy announce on June 28, 2022 regarding the Palisades Power Plant?

Entergy announced the completion of the sale of the Palisades Power Plant to Holtec International.

What is the significance of the Palisades Power Plant sale for Entergy (ETR)?

The sale signifies Entergy's exit from the nuclear merchant power business and allows it to focus on utility operations.

When did the Palisades Power Plant cease operations?

The Palisades Power Plant was permanently shut down on May 20, 2022.

How long does Holtec plan to take for the decommissioning of the Palisades site?

Holtec plans to complete the decommissioning of the Palisades site by 2041.

What was the regulatory approval status for the Palisades sale?

The U.S. Nuclear Regulatory Commission approved the license transfer for decommissioning in December 2021.