News Center > Entergy to Acquire Rhode Island State Energy Center
Entergy to Acquire Rhode Island State Energy Center
Company Signs Definitive Agreement with NextEra for Purchase of Natural Gas-Fired Power Plant
NEW ORLEANS – Entergy Corporation (NYSE: ETR) announced today that it has reached an agreement with a subsidiary of NextEra Energy Resources, LLC to acquire the Rhode Island State Energy Center (RISEC), a 550-megawatt power plant located in Johnston, Rhode Island, for approximately $346 million, subject to closing adjustments.
"The acquisition presents an opportunity to create value by acquiring modern, efficient generation at approximately half the new build cost and is in line with our disciplined, market point of view for capital deployment," said Richard Smith, president of Entergy Wholesale Commodities. "This asset enhances the value of our existing portfolio through the addition of generation in the New England market that is well positioned to benefit from expected market recovery."
The facility is a nominal 550-megawatt Siemens natural gas-fired combined-cycle generating plant that entered commercial service in 2002. RISEC is currently working with Siemens to facilitate the uprate of its combustion turbines, which is scheduled for completion in November 2011 and will increase the facility's nominal capacity to 583 megawatts. The transaction is contingent upon, among other things, obtaining necessary regulatory approval from the Federal Energy Regulatory Commission and notification of the transaction pursuant to the Hart-Scott-Rodino antitrust law. Closing is expected to occur in late 2011.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $11 billion and approximately 15,000 employees.
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In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed in: (i) Entergy's Form 10-K for the year ended December 31, 2010; (ii) Entergy's Form 10-Q for the quarters ended March 31, 2011 and June 30, 2011; and (iii) Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; and (f) conditions in commodity and capital markets during the periods covered by the forward-looking statements, in addition to other factors described elsewhere in this release and subsequent securities filings.