Entergy Takes $240 Million Hit to Retire Nuclear Plant

Entergy (NYSE: ETR  ) announced today that, despite regulatory approval through 2032  and $400 million in investments over the past decade, it is retiring its Vermont Yankee nuclear power plant in Q4 2013.

Source: NRC.gov.

The decision was an "extremely tough call," according to Chairman and CEO Leo Denault, but three main factors forced the closing: (1) shale gas pushing wholesale energy prices down, (2) high costs for the plant relative to its size, and (3) "wholesale market design flaws" that make full compensation impossible for competitive nuclear plants in the region.

Entergy plans to take a $181 million hit in Q3, followed by another $55 million to $60 million in the next year to cover severance and employee retention costs. Since Entergy had previously expected the plant's operational earnings to break even in 2013 before dipping into the red over the next few years, this decision will ultimately add around $150 million to $200 million to cash flow through 2017.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2612549, ~/Articles/ArticleHandler.aspx, 11/28/2014 3:38:19 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 17,827.75 12.81 0.07%
S&P 500 2,072.83 5.80 0.28%
NASD 4,787.32 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

11/26/2014 4:02 PM
ETR $82.17 Up +0.86 +1.06%
Entergy Corp CAPS Rating: ****

Advertisement