Entergy to continue operating Palisades Power Plant until spring 2022
Friday, Sep 29, 2017
Entergy Corporation (NYSE: ETR) announced today that it plans to operate Palisades Power Plant in Covert, Michigan, until the spring of 2022, under the existing Power Purchase Agreement (PPA) with Consumers Energy.  

"In light of the Michigan Public Service Commission's order issued September 22, which granted Consumers Energy recovery of only $136.6 million of the $172 million it requested for the buyout of the PPA, the parties have agreed to terminate the buyout transaction," said Charlie Arnone, site vice president and Entergy's top official at Palisades.

Today's announcement reverses Entergy's December 2016 decision to close Palisades on October 1, 2018, but Entergy remains committed to its strategy of exiting the merchant nuclear power business.

"We greatly appreciate the continued patience of our employees and the local community in Southwest Michigan throughout this regulatory process, and we will continue to focus on the plant's safe and reliable operations," Arnone added. "Entergy will continue to make all necessary investments and maintain appropriate staffing, in accordance with strict licensing standards."

Financial Implications


The impact of the decision on free cash flow is expected to be positive $100 million to $150 million compared to the PPA amendment with Consumers Energy. In addition, due to the change in operating assumptions, under applicable accounting rules we no longer expect fuel, refueling outage costs and capital expenditures to be expensed as incurred. Instead, these expenditures will be amortized or depreciated over their useful lives and the expense will be included in operational results.

About Palisades and Entergy Corp.

The Palisades Power Plant employs about 600 workers and has been a part of the Van Buren County community since it began generating electricity in 1971. The plant generates 811 megawatts of virtually carbon-free electricity, enough to power more than 800,000 homes.

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 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.

For more information, please visit: http://www.entergy.com

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