Albany, NY, August 29, 2001 – The New York State Public Service Commission today approved the sale of Consolidated Edison Company of New York, Inc.’s (Con Edison) Indian Point 1 and Indian Point 2 nuclear generating facilities, as well as related assets, to Entergy Nuclear Indian Point 2, LLC (Entergy).
A petition from both companies was filed with the Commission on January 11, 2001, requesting approval of the sale under Section 70 of the Public Service Law. Included in the sale are the retired Indian Point 1 unit, the operating Indian Point 2 generating facility, three gas turbines, various ancillary facilities, the real estate in the town of Buchanan where the facilities are located and the Toddville Training Center in the Town of Cortlandt.
According to the terms of the sale Con Edison will receive $502 million for these assets, plus another $107 million for its nuclear fuel and fuel oil. Con Edison will also transfer to Entergy $430 million in decommissioning trust funds.
Upon completion of the sale, Entergy will assume full responsibility for decommissioning the Indian Point units and restoring the site when the operating license expires. Entergy will also take title to, and be responsible for, the ultimate disposal of the spent nuclear fuel used at the Indian Point facilities.
The total purchase price of the plant is subject to adjustment based on the market value of the decommissioning fund at the time of closing, the amount of the fuel inventory at the time of closing, and other, smaller adjustments.
“I firmly believe that ratepayers, and the state as a whole, will benefit from the approval of this transaction,” said Commission Chairman Maureen O. Helmer. “The transaction is consistent with our efforts to establish a competitive wholesale market that will lead to lower prices over the long run while protecting consumer rates during the transition. “Further, Entergy is one of the world’s premier nuclear operating companies, and I expect that to be demonstrated through the company’s performance in safely and reliably operating Indian Point 2.”
Included in the terms of the sale is a power purchase agreement (PPA) that requires Entergy to sell to Con Edison all of the electricity generated by Indian Point 2 for an average price of $39 per Megawatt hour through 2004. Pursuant to a Capacity Purchase Transaction Agreement (CPTA), Con Edison will also purchase the plant’s installed capacity through April 2005, with options for capacity purchases for another six years.
The PPA and CPTA agreements will serve as a hedge for Con Edison’s customers against any spikes in energy and capacity prices that might occur. Consistent with previous Commission orders, and the joint proposal submitted by the companies and Department of Public Service staff in this case, disposition of any gains and Con Edison’s opportunity to recover any stranded costs will be considered at a later date.
The Commission will issue a written decision detailing today’s action.
The order in Commission Case 01E0040, when available, can be obtained from the Commission’s web site at http:// www.dps.state.ny.us by accessing the “Commission Documents” section of the homepage.