New York, NY--Entergy Corporation
(NYSE: ETR) and Consumers Energy, the principal subsidiary of CMS Energy (NYSE:
CMS), announced today the completion of the previously announced purchase by
Entergy of the 798-megawatt Palisades Nuclear Plant, near South Haven, Michigan
for $380 million.
As part of the purchase, Entergy will
sell 100 percent of the plant’s output, up to its current 798 megawatts, back to
Consumers Energy for 15 years at a price that retains the benefits of the low-cost nuclear generation for Consumers
Energy’s 1.8 million electric customers.
Said Entergy Nuclear President and
Chief Nuclear Officer Michael R. Kansler, “Entergy Nuclear has a strong track
record of generating safe, clean, reliable, and low-cost energy across the
Southern and Northeastern United States. Now that Palisades is part of Entergy’s
nuclear fleet, we look forward to bringing our track record to Michigan and
continuing Entergy’s strong tradition as a good employer and community partner
that our customers, local communities and employees expect and deserve.”
The transfer in ownership was
reviewed by the Nuclear Regulatory Commission (NRC), the Michigan Public Service
Commission (MPSC), U.S. Department of Justice (USDOJ), the Federal Trade
Commission (FTC), and the Federal Energy Regulatory Commission (FERC).
David Joos, CMS Energy's president
and chief executive officer, said Consumers Energy's 1.8 million customers will
benefit from the sale and the 15-year contract for the plant's electrical
"Palisades will continue to provide the benefits of low-cost nuclear generation to Consumers Energy's customers.
Plus, net proceeds from the sale will be used to provide $255 million in bill
credits to customers over the next 18 months, as ordered by the Michigan Public
Service Commission. Together, this sale and power contract provide significant
benefits to customers. Entergy is one of the premier operators of nuclear energy
plants in the country and able to continue the long tradition of safe, reliable
and economic production from the Palisades plant," said Joos.
The transaction includes the transfer
of the Big Rock Point Independent Spent Fuel Storage Installation to Entergy.
With the addition of Palisades,
Entergy – the nation's second largest nuclear power company – owns and manages
11 nuclear generating power plants and manages a 12th for the State of Nebraska.
On January 18, Palisades was granted a 20-year renewal of its operating license
by the Nuclear Regulatory Commission. Its current operating license now expires
About Entergy Corporation
Entergy Corporation, headquartered in New Orleans, La., 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. Entergy Nuclear, its nuclear
businesses headquartered in Jackson, Miss., is the second-largest nuclear power
operator in the United States and the largest in the Northeast. Entergy delivers
electricity to 2.6 million utility customers in Arkansas, Louisiana, Mississippi
and Texas. Entergy has annual revenues of more than $10 billion and
approximately 14,000 employees. Additional information regarding the transaction
is available in Entergy’s investor release dated July 12, 2006, on Entergy’s
investor relations website at
http://www.shareholder.com/entergy/publications.cfm. For more information,
please visit www.entergy-nuclear.com.
About CMS Energy
CMS Energy is a Michigan-based company that has as its primary business
operations an electric and natural gas utility, natural gas pipeline systems,
and independent power generation. For more information, please visit