Entergy, New York Reach Deal Tied to Nuclear-Power Spinoff

August 26, 2008;

New York Attorney General Andrew Cuomo said New York state will continue to receive as much as $72 million a year through 2014 if Entergy Corp. spins off its Indian Point and FitzPatrick nuclear stations into the nation's first stand-alone nuclear-power company.
Mr. Cuomo said the New Orleans-based company agreed not to "renege" on its contract to pay $432 million to the New York Power Authority over the length of the revenue-sharing agreement, which runs through 2014.
Alex Schott, an Entergy spokesman, said the company has agreed to a "resolution of dispute" pact with the New York Power Authority that "the proposed spinoff will not result in a termination of the value-sharing payments."
The deal to spin off the plants has to be approved by the state Public Service Commission and other state regulators. Mr. Cuomo has opposed the spinoff. Mr. Schott said Entergy is still targeting the fourth quarter for receiving regulatory approvals.
Under the proposal, Entergy would transfer five nuclear power plants it owns in the Northeast -- including two reactors at the Indian Point Energy Center in Buchanan, N.Y., and one reactor at James A. FitzPatrick plant near Oswego, N.Y. -- to a new publicly traded company called Enexus Energy Corp.