Entergy to sell subsidiaries to a Holtec International subsidiary
Entergy has agreed to sell the subsidiaries that own Indian Point Units 1, 2, and 3, located in Buchanan, N.Y., to a Holtec International subsidiary for decommissioning. The sale, which will be effective after Unit 3 has been shut down and permanently defueled, includes the transfer of the licenses, spent fuel, decommissioning liabilities, and Nuclear Decommissioning Trusts, or NDT, for the three units. With this agreement to sell Indian Point, Entergy has now announced the sale of its entire remaining merchant nuclear fleet for decommissioning. The transaction is subject to closing conditions, including approval from the NRC. Entergy remains committed to the safe and reliable operation of Indian Point Unit 2 and Unit 3 until their permanent shutdowns in 2020 and 2021, respectively. The transaction is expected to result in a non-cash loss based on the difference between Entergy's adjusted net investment in the subsidiaries at closing and the sale price net of any agreed adjustments. As of Dec. 31, 2018, Entergy's adjusted net investment in the companies was $265M. The terms of the transaction include limitations on withdrawals from the NDTs to fund decommissioning activities and controls on how Entergy manages the investment of NDT assets between signing and closing; however, the agreement does not require a minimum level of funding in the NDTs as a condition to closing. Entergy affirmed its expectation for Entergy Wholesale Commodities to provide positive net cash to parent from 2019 to 2022.