Entergy: Exec comments 'hypothetical'
Toolbox
By Susan Smallheer STAFF WRITER - Published: November 4, 2009
The chief executive of Entergy Corp. caused a stir Tuesday when he suggested in a talk to energy investors that Entergy may spin off its other nuclear reactors, rather than the group that includes Vermont Yankee, if its plans are thwarted by New York or Vermont.
Wayne Leonard, Entergy's chairman and chief executive, made his comments Tuesday morning in Hollywood, Fla., speaking to the Edison Electric Institute conference.
But later in the day, Entergy spokesman Mike Burns said Leonard was just speaking hypothetically in response to a question about the long-delayed spinoff company, which will be called Enexus Energy Corp.
So far, state regulators in New York and Vermont have declined to sign off on the plan, which would create a company independent from Entergy, made up of its "merchant" nuclear reactors, those plants that can sell power output on the open market.
Burns said Entergy was not considering the reverse spinoff, despite Leonard's comments to the group of shareholder-owned utilities.
He said Entergy expected a decision from utility regulators in New York state and Vermont by the end of the year and that the deal would be quickly consummated.
Sarah Hofmann, director of public advocacy for the Department of Public Service, said she had seen the story in the Wall Street Journal, but she knew nothing beyond that.
She said under the scenario mentioned in the article, quoting Leonard, Vermont would no longer be split off, but would remain with Entergy.
The Department of Public Service in Vermont only recently endorsed the Enexus plan, which had been proposed about two years ago.
But the new deal raised other questions, and a pair of Vermont legislative committees are slated to begin hearings into the proposed memorandum of understanding, which could further delay a decision from the Vermont Public Service Board.
Concern in Vermont about the Enexus deal focuses on the longtime responsibility of the plant's cleanup and decommissioning, and whether the new company would have the financial wherewithal to undertake major repairs or the decommissioning itself.
Board hearings on the spinoff were held in the summer of 2008.
The plan had a major setback a year ago during the global credit freeze since Entergy needs to borrow billions of dollars to pull off the Enexus spinoff deal.
Leonard was quoted in the Journal as saying the reverse spinoff would take more time and more regulatory approval.
"It was a hypothetical taken to the absolute extreme," said Burns, who didn't contest the accuracy of the story. "He kind of flipped it … it would achieve the same objectives."
"We have no plans," he said, to change the currently proposed plan.
Burns said the creation of Enexus would create "a more focused management team, that is singularly focused on the nuclear power business."
"It would allow Enexus to have more financial flexibility to operate and pursue opportunities down the road," he said.
susan.smallheer@rutlandherald.com
39