4 February 2009 — Entergy said ongoing financial market turmoil and a longer than expected regulatory approval process has led it to take a “rolling readiness posture” with regard to its plan to spin off its portfolio of nuclear generating assets.
“This strategy enables Entergy to execute the spin-off following receipt of regulatory approvals and once the timing is right to access the credit markets, both on acceptable terms,” the company said.
In November 2007 Entergy’s board approved a plan to separate the non-utility nuclear business from Entergy’s regulated utility business through a tax-free spin-off of the non-utility nuclear business. Enexus Energy Corp. was set up as a new, independent publicly traded company. Entergy and Enexus also intend to enter into a nuclear services joint venture.
The company said key board and leadership positions are filled and regulatory proceedings continue to advance. In Vermont, all scheduled procedural matters have been completed and a decision from the Vermont Public Service Board is pending.
In New York, all scheduled procedural matters have been completed and the administrative law judges said no further formal proceedings are warranted and that enough information is available for regulators to make their decision. In December, the administrative law judges said the parties planned to hold settlement talks. To date, those talks have yielded no agreement.
Also in late December, Enexus put in place a $1.175 billion senior secured revolving credit facility.
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