JULY 12, 2006 - Posted at 3:34 p.m. CDT
NEW YORK - Entergy Corporation, an integrated utility that provides electricity in the South and Northeast, today said it will buy Consumers Energy's 798-megawatt Palisades Nuclear Power Plant near South Haven, Michigan, for $380 million.
New Orleans-based Entergy says the purchase price breaks down to $242 million for the plant, $83 million in nuclear fuel, and $55 million in related assets.
Entergy will also take on the Big Rock Point Independent Spent Fuel Storage Installation and receive $30 million for accepting responsibility for the decommissioned nuclear plant.
As part of the deal, the company will also sell all the Palisades plant's energy output back to Consumers Energy, the principal subsidiary of Jackson, Michigan-based CMS Energy, for 15 years. The rate was not disclosed.
In addition, Entergy plans to offer employment to the plant's 500 active employees at their current wages for 18 months and continue their benefits for 36 months.
Subject to regulatory approval, the sale is expected to close in the first quarter of 2007.
Entergy provides electric service to customers in Arkansas, Louisiana, Mississippi and Texas.