Entergy scrambling to split off old nuke plants

Entergy has attempted another “special-of-the-day” offer to woo lawmakers into allowing one of their questionable business objectives to gain approval. On the eve of a discussion by New York’s Public Service Commission regarding Entergy’s devious plan to spin off its oldest, leaking nuclear power plants into a new and heavily debt-laden company (Enexus), Entergy offered  to reduce the amount of the new company’s initial debt load from $3.5 billion to a mere $3 billion. What a deal! With $500 million less debt, Entergy appears to be hoping that enough suckers will believe that this might cover the currenly-unknown costs of decommissioning a half-dozen toxic, old nuke plants before the corporation gets stuck paying their own bill.

Hey Entergy! Haven’t you heard? There’s no such thing as a free lunch.

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As Katarzyna Klimasinska reports in BusinessWeek:

March 03, 2010

Entergy Offers Spinoff Debt Cut for N.Y. Approval

March 3 (Bloomberg) — Entergy Corp., owner of the second- largest group of U.S. nuclear power plants, proposed reducing long-term debt for a unit it plans to spin off, as it seeks New York’s approval for the transaction.

The New York State Public Service Commission is scheduled to discuss at a meeting in Albany tomorrow Entergy’s petition to separate six nuclear reactors into a new company.

Entergy, based in New Orleans, said in a filing dated yesterday that it would reduce the debt of the spinoff company to $3 billion from $3.5 billion. It is Entergy’s second offer to lower the unit’s debt since announcing the spinoff in November 2007.

The company, based in New Orleans, also proposed to contribute as much as $300 million to New York’s energy efficiency program, if power prices “exceed certain levels.”

The nuclear unit would own the James A. FitzPatrick and Indian Point power plants in New York as well as the Pilgrim plant in Massachusetts and Vermont Yankee reactor in Vermont.

Original article: http://www.businessweek.com/news/2010-03-03/entergy-offers-spinoff-debt-cut-for-n-y-approval-update1-.html.

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