Thursday, March 31, 2011

Entergy (ETR) Attracts No Interest in Nuclear Plant Sale

Entergy (NYSE:ETR) has decided the end its quest to sell its nuclear plant in Vermont, as the state has yet to renew its operating license there, even though federal authorities have done so via the Nuclear Regulatory Commission, which recently renewed it for 20 years.

Also concerning selling its power to the largest utilities in the state, Entergy has failed there as well, unable to come to an agreement with most of them, although it did secure a deal with Vermont Electric Cooperative Inc., the third-largest electric company in the state.

In that deal they agreed to sell Vermont Electric power for 4.9 cents per kilowatt hour for the first year of a contract extending 20 years. After that prices will fluctuate based on the market.

The caveat there is that the plant must be operational after 2012, something that is far from certain at this time.

Political winds are now against the company in that regard.

Entergy closed Wednesday at $68.00, gaining $0.67, or 1.00 percent.

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