Entergy in talks with Exelon on potential sale of FitzPatrick nuclear-power plant

SCRIBA, N.Y. — Entergy Corp. (NYSE: ETR) on Wednesday announced that it is in discussions with Exelon Corp. (NYSE: EXC) for the potential sale of the James A. FitzPatrick nuclear-power plant in Scriba.

New Orleans, Louisiana–based Entergy, which owns the FitzPatrick plant, on Nov. 2, 2015 announced plans to close and decommission the plant.

The FitzPatrick facility employs more than 600 workers, who would lose their jobs with its closure.

Chicago, Illinois–based Exelon operates the Nine Mile Point nuclear-power station, which is also located in Scriba.

The discussions with Exelon are “consistent” with Entergy’s commitment to “consider any viable option” that would allow FitzPatrick to remain in operation, Entergy said in a news release issued Wednesday. Entergy is targeting late January 2017 to “cease operations” at the FitzPatrick plant.

“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,” Bill Mohl, president of Entergy wholesale commodities, said in the company’s news release. “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.”

New York’s clean-energy standard mandates that 50 percent of all electricity consumed in New York by 2030 come from clean and renewable-energy sources.

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, Entergy said.

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 end operations, followed by decommissioning.

Negotiations with Exelon are “ongoing,” targeting mid-August for completion, so Entergy said it “cannot yet” describe the material terms of any definitive agreement that it may enter into with Exelon.

The James A. FitzPatrick nuclear-power plant generates 838 megawatts of nearly carbon-free electricity, enough to power more than 800,000 homes, according to Entergy.

The FitzPatrick plant has been a part of the Oswego County community since it began generating electricity in 1975, Entergy said.

Contact Reinhardt at ereinhardt@cnybj.com