Entergy (NYSE:ETR) said during its first-quarter earnings call Wednesday that it remains on course to shut down its nuclear-powered Palisades plant in Michigan, despite the Department of Energy’s $6 billion program to prevent the early closure of nuclear generators. (See DOE Launches $6B Nuke Credit Program.)
“We’re supportive of the federal initiative to keep nuclear plants operating,” CEO Leo Denault told financial analysts. “However, we are five years into the Palisades shutdown process. There are significant technical and commercial hurdles. It’s a real heavy lift at the last hour.”
Denault said Entergy has not ordered additional fuel for Palisades Nuclear Generating Station, which is out of fuel and is scheduled to shut down at the end of May. The company has been preparing to shutter Palisades since 2017 and has not refueled the plant since 2020.
The Nuclear Regulatory Commission in December approved Entergy’s request to transfer Palisades, its nuclear trust fund and its spent fuel to Holtec Decommissioning International. The company said it will work with Holtec or any party interested in getting the Federal funding.
“This does not change our strategy. We are exiting the merchant nuclear business,” Denault said.
Shutting down nuclear plants “is just backwards,” Denault said, noting their importance in supporting the grid’s reliability and in decarbonization efforts.
New Orleans’ only Fortune 500 company reported earnings of $276 million ($1.36/share), down from 2021’s first-quarter earnings performance of $335 million ($1.66/share). Entergy said it is ahead of schedule for its 2022 objectives based on favorable weather and higher-than-expected retail sales in the quarter.
The company’s adjusted earnings of $269 million ($1.32/share) missed the Zacks Consensus Estimate of $1.38/share.
Denault said the company has 650 MW of renewable capacity in place, with another 625 MW of solar energy gaining regulatory approval and a further 725 MW of projects announced. Entergy also has 4 GW of requests for proposals out for bid, totaling more than half of its 11-GW renewable target through 2030.
Entergy’s share price closed at $120.68, a gain of 2 cents from its previous close and up from its $119.88 open.
