Entergy Corp. will have another chance Thursday to present its case for the spinoff of its nonregulated nuclear power reactors to the New York Public Service Commission, but the PSC staff remains unconvinced, Reuters reports.
Entergy, of New Orleans, wants to spin off six reactors capable of generating 5,000 megawatts, including three in New York, to a company to be called Enexus.
The PSC staff, however, said it was concerned about the long-term financial viability of Enexus and wants to see more benefits for New York ratepayers.
Specifically the staff said it wants Enexus to maintain at least a BB+ credit rating, restrict share repurchases and dividends and make payments to ratepayers, among other things.
Entergy said those concessions were beyond what the state has subjected other generators to and would weaken Enexus’ financial strength and flexibility by hurting its access to equity and debt markets.
In early March, Entergy sweetened its plan by offering to pay up to $300 million to the state’s energy efficiency fund over 15 years if future power prices exceed certain levels, and to reduce the amount of debt Enexus would start with to $3 billion from $3.5 billion.
Entergy also said it would restrict Enexus’ dividend payments until the company achieves a BB+ credit rating, or a 50 percent or lower net debt-to-capitalization ratio.
But the Commission on March 4 put off a decision on Entergy’s latest offer, which was not well received by the PSC staff, in part because Entergy only filed it a couple of days before the meeting.
The Commission will meet again on March 25 and discuss Entergy’s latest offer.
In New York, Entergy wants to transfer the 852-megawatt FitzPatrick reactor in Oswego County on Lake Ontario and the 2,045-MW Indian Point reactors in Westchester County about 45 miles north of Manhattan.
Outside of New York, Entergy wants to transfer the 685-megawatt Pilgrim reactor in Massachusetts, 778-megawatt Palisades in Michigan and 620-megawatt Vermont Yankee in Vermont.
