- Entergy (NYSE:ETR) says its will close its Indian Point nuclear plant in 2020-21 under a deal struck with the New York state, confirming earlier reports.
- The early shutdown is part of a settlement under which the state agrees to drop legal challenges and support renewal of the operating licenses for Indian Point.
- ETR says the shutdown will complete its exit from the merchant power business because of sustained low wholesale energy prices.
- ETR says it will recognize a related non-cash charge of ~$2.4B pre-tax and $1.5B after-tax in Q4 2016, plus ~$180M in additional charge through the end of 2021 related to severance and employee retention costs.
- State officials and environmental groups have long criticized the plant for damaging the environment and aquatic wildlife along the Hudson River, and NY Gov. Cuomo has voiced concerns about the plant’s proximity to New York City.
- U.S. utilities are closing nuclear power plants as they face competition from cheaper sources of electricity and political pressure from critics; Indian Point's closure would bring the tally of plants set to close by 2025 to four.