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  • Entergy to continue to operate Palisades Power Plant until Spring 2022

    • Share:
    September 28, 2017
    FOR IMMEDIATE RELEASE
    Palisades Power Plant
    27780 Blue Star Highway
    Covert, MI 49043

    For more information:
    Val Gent | Entergy Communications | 269-764-2333 | vgent@entergy.com Jerry Nappi I Entergy 
    Communications I 914-489-6077 I jnappi@entergy.com
    Entergy to Continue Operating Palisades Power Plant Until Spring 2022

    COVERT, Mich. (September 28, 2017) – Entergy Corporation (NYSE: ETR) announced today that it plans to operate Palisades Power Plant in Covert, Michigan, until the spring of 2022, under the existing 
    Power Purchase Agreement (PPA) with Consumers Energy.
    “In light of the Michigan Public Service Commission’s order issued September 22, which granted 
    Consumers Energy recovery of only $136.6 million of the $172 million it requested for the buyout of 
    the PPA, the parties have agreed to terminate the buyout transaction,” said Charlie Arnone, site 
    vice president and Entergy’s top official at Palisades.
    Today’s announcement reverses Entergy’s December 2016 decision to close Palisades on October 1, 
    2018, but Entergy remains committed to its strategy of exiting the merchant nuclear power business.
    “We greatly appreciate the continued patience of our employees and the local community in Southwest 
    Michigan throughout this regulatory process, and we will continue to focus on the plant’s safe and 
    reliable operations,” Arnone added. “Entergy will continue to make all necessary investments and 
    maintain appropriate staffing, in accordance with
    strict licensing standards.”


    Financial Implications
    The impact of the decision on free cash flow is expected to be positive $100 million to $150 
    million compared to the PPA amendment with Consumers Energy. In addition, due to the change in 
    operating assumptions, under applicable accounting rules we no longer expect fuel, refueling outage 
    costs and capital expenditures to be expensed as
    incurred. Instead, these expenditures will be amortized or depreciated over their useful lives and 
    the expense will be included in operational results.


    About Palisades and Entergy Corp.
    The Palisades Power Plant employs about 600 workers and has been a part of the Van Buren County 
    community since it began generating electricity in 1971. The plant generates 811 megawatts of 
    virtually carbon-free electricity, enough to power more than 800,000 homes.
    Entergy Corporation is an integrated energy company engaged primarily in electric power production 
    and retail distribution operations. Entergy owns and operates power plants with approximately 
    30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear 
    power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, 
    Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 
    employees.

    Cautionary Note Regarding Forward-Looking Statements
    In this news release, and from time to time, Entergy Corporation makes certain “forward-looking 
    statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such 
    forward-looking statements include, among other things, Entergy’s statements of its plans, beliefs 
    or expectations in this news release regarding financial impact of continued operation of the 
    Palisades Power Plant. Readers are cautioned not to place undue reliance on these forward-looking 
    statements, which apply only as of the date of this news release. Except to the extent required by 
    the federal securities laws, Entergy undertakes no obligation to publicly update or revise any 
    forward-looking statements, whether as a result of new information, future events or otherwise.
    Forward-looking statements are subject to a number of risks, uncertainties and other factors that 
    could cause actual results to differ materially from those expressed or implied in such 
    forward-looking statements, including (a) those factors discussed elsewhere in this news release 
    and in Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 
    10-Q and Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) 
    uncertainties associated with rate proceedings, formula rate plans and other cost recovery 
    mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the 
    utilities; (c) uncertainties associated with efforts to remediate the effects of major storms and 
    recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs 
    and risks, including any changes resulting from the nuclear crisis in Japan following its 
    catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings 
    or in the timing or cost of decommissioning Entergy’s nuclear plant sites; (f) legislative and 
    regulatory actions and risks and uncertainties associated with claims or litigation by or against 
    Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions 
    that Entergy or its subsidiaries may undertake, including the risk that any such transaction may 
    not be completed as and when expected and the risk that the anticipated benefits of the transaction 
    may not be realized; (h) effects of changes in federal, state or local laws and regulations and 
    other governmental actions or policies, including changes in monetary, fiscal, tax, environmental 
    or energy policies; and (i) the effects of technological changes and changes in commodity markets, 
    capital markets or economic conditions, during the periods covered by the forward-
    looking statements.
    -30-
    Additional information is available at entergy.com and palisadespower.com.
     
    Contact:
    Nicholas Culp, Manager, Government Affairs
    nculp@entergy.com, (269) 350-1787