Entergy Could Have a Nuclear Power Plant for Sale (ETR, EXC, DUK)
It’s been nearly three years since Entergy Corp. (NYSE:ETR) first said it would spin off its non-utility nuclear power plants into a new company called Enexus. The state of New York’s public service commission rejected the plan unanimously in March…
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Entergy does not have a good story to tell in Vermont. The company told the public service commission that its plant did not have any underground piping, which had been causing concerns about leakage at other plants around the country. It turns out that tests at the Vermont Yankee reactor revealed that radioactive tritium had gotten into the groundwater from a leaking underground pipe. NY Times article
Now, Vermont’s governor-elect says the plant should be shut down on schedule in 2012. And anyway, who does Entergy think will buy a the plant? A nuke that’s leaking radioactive material into the groundwater? It’s probably impossible to overstate the dimness of the bulb that wants to buy Vermont Yankee.
The state of Vermont gets more than 50% of its electricity from Vermont Yankee, which generates about 80% of all the electricity in the state. The other 30% of the plant’s generation is exported. As a result, Vermont always figures near the top of green-friendly states. And where the state will get its power, and at what cost, will surely figure in to a decision to renew Vermont Yankee’s license.
Entergy’s shares are down slightly today, probably because most of the news here has already been priced into the share price. The 52-week range is $70.35-$84.44 and the stock’s at about $75/share now.
Paul Ausick
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
