Entergy said last week the recent sale of its Indian Point nuclear plant completes the final disposition of nuclear assets in its wholesale business, calling it an “important new milestone.”
“We now have definitive agreements to sell all of [Entergy Wholesale Commodities] remaining nuclear assets,” CEO Leo Denault told financial analysts during the company’s May 1 quarterly earnings conference call.
Entergy announced in April it had reached an agreement for a post-shutdown sale of Indian Point to Holtec International. The New York plant’s two remaining units, which have a combined capacity of more than 2 GW and date back to the 1970s, will be shut down in 2020 and 2021. The sale is expected to close in 2021.
Denault said Entergy plans to shut down its 688-MW Pilgrim nuclear plant in Massachusetts in May. The New Orleans-based company expects to complete the sale of its 811-MW Palisades plant in Michigan after it is shut down in 2022.
“The sales of these plants are important … they secure our orderly exit from the merchant business in a way that benefits stakeholders by accelerating the decommissioning timeline,” Denault said.
Entergy reported first-quarter earnings of $255 million ($1.32/share), compared with $133 million ($0.73/share) a year ago. Earnings were $0.82/share when adjusted for non-recurring items, missing Zacks Investment Research consensus expectation of $0.94/share.
Entergy’s package of earnings materials included its first analysis on climate change. In the report, the company said it would reduce its CO2 emissions rate by 50% below 2000 levels by 2030.
“The broad consensus of current scientific data on climate change indicates that as an industry we must do more to reduce our footprint and that of our customers and communities,” Denault said. “Entergy sees this not as a choice, but as a responsibility and an opportunity. “For every unit of electricity we generate in 2030, we will emit half the carbon dioxide we did in 2000.”
Entergy’s share price closed the week at $96.63, up 18 cents from its May 1 open.
OGE Earnings Down from 2018
OGE Energy on May 2 announced first-quarter earnings of $47.1 million ($0.24/share), a drop from a year ago when earnings were $55 million ($0.28/share).
The Oklahoma City-headquartered company attributed the difference to higher expenses due to the timing of certain projects, additional assets being placed into service, and lower allowances for construction funds as “key environmental assets were placed into service.”
On May 6, Oklahoma regulators will consider an OGE settlement agreement seeking recovery for the addition of scrubbers on its two coal-fired Sooner Power Plant units and converting two coal units at Muskogee Power Plant to gas.
“With our large environmental investments complete, we look forward to continuing to enhance the customer experience through investments in technology and the electric grid,” CEO Sean Trauschke told financial analysts.
OGE’s share price picked up almost a dollar after the earnings release, ending the week at $41.61.
— Tom Kleckner
