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$ETR said Entergy New Orleans Inc. filed an application with the New Orleans City Council on Oct. 6 seeking approval of a project to construct 5 megawatts of commercial-scale rooftop solar systems as part of its commitment to pursue up to 100 MW of renewable resources.
$ETR said it plans to operate Palisades Power Plant in Covert, until 2022, under the Power Purchase Agreement with Consumers Energy, an arm of $CMS. The impact of the decision on free cash flow is expected to be positive, $100MM to $150MM compared to the PPA amendment with Consumers Energy. Earlier, $ETR decided to close Palisades on Oct 1, 2018.
$ETR said Entergy Mississippi is investing $16.6MM in the energy grid at Jackson, Mississippi for 2017. The company will spend more than $1MM on vegetation management along with approx. $5.2MM on substation work. The company will also spend more than $1MM on equipment replacement.
Integrated energy company $ETR reported a drastic fall in 1Q17 earnings. Operating revenue was down 0.8% to $2.58Bil. Net income stumbled to $82.6MM, or $0.46 per share, from $230MM, or $1.28 per share in 1Q16. EPS was 99 cents on an operational basis.
$EXC Generation assumed ownership and management of operations of the James A. FitzPatrick Nuclear Power Plant in Scriba, NY. Exelon Generation named a new site VP, Joseph Pacher, who was formerly site VP at R.E. Ginna Nuclear Power Plant. The former site VP of FitzPatrick, Brian Sullivan, was retained by $ETR as part of original transaction deal.
With regards to rightsizing the organization, $ETR said that it started looking at this when it decided to shutdown the Vermont Yankee plant in 2014. Until 2021, the plants will be closed sequentially and the company has already started working on the organization size.
$ETR said that Entergy Wholesale Commodities (EWC), parent and other segments are expected to have as-reported losses in the future. Lower tax rate would provide a lower tax yield from those losses. $ETR expects to be in net operating loss (NOL) position for the foreseeable future, even though there will be earnings impacts in these segments.
$ETR said that it is premature to draw any firm conclusion on tax reforms. The company believes Entergy Wholesale Commodities (EWC) business and the parent business could see an earnings impact and cash impacts to be minimal. At the utility business, the company believes the impact on investors are manageable, while customers might benefit.
$ETR said that it is now building plants than acquiring them. New units will have lower maintenance costs and produce up to 40% fewer carbon emissions. These plants will provide fuel diversity and reduce fuel price volatility for the customers, the company said. $ETR is on schedule to deliver the Lake Charles transmission project by June 2018.
$ETR finalized plans to sell or shutdown all remaining nuclear plants in the EWC portfolio. The proposed sale of FitzPatrick nuclear power plant to $EXC is on track to close in 2017. In 2018, $ETR expects to close Palisade nuclear power plant, followed by Pilgrim in 2019. In 2021, $ETR expects to close Indian Point's Unit II and III.
Consumers Energy, the principal subsidiary of $CMS, reached agreement with $ETR for early termination of its contract to purchase power from the Palisades nuclear plant. Regulatory approval of the agreement is expected to lower customer costs by as much as $172MM, as well as drive additional investment by Consumers Energy.