Entergy Corporation recently completed the sale of the subsidiary that owns the Pilgrim Nuclear Power Station to a Holtec International subsidiary, which plans to complete major decommissioning activities at the site. Pilgrim was shut down permanently by Entergy on May 31, 2019, after providing electricity safely to the region for more than 46 years.
Entergy and Holtec announced the Pilgrim sale agreement in August 2018 and the U.S. Nuclear Regulatory Commission (NRC) approved the transfer of Pilgrim's licenses to Holtec on Aug. 22, 2019. In its order, the NRC found that Holtec possesses the required technical and financial qualifications to own and decommission Pilgrim safely in accordance with all NRC requirements.
"The successful Pilgrim transaction demonstrates continued progress on Entergy's exit from merchant power markets," said Entergy Chairman and CEO Leo Denault. "With our previously announced signed agreements for the post-shutdown sales of Indian Point and Palisades nuclear power plants in 2021 and 2022 respectively, we remain on track to accomplish our exit plan."
"Protecting public health, safety, and the environment is the foundation upon which all Pilgrim decommissioning work will occur," said Holtec's President and CEO Dr. Kris Singh. "We are committed to engaging with stakeholders at the local and state levels to ensure a smooth flow of information throughout the decommissioning process. The cutting-edge technologies we use will ensure maximum safety for our employees and communities, and enable the site to be decommissioned decades sooner than if Pilgrim had remained under Entergy's ownership."
The transaction closed on terms consistent with Entergy's expectations and no contribution to the nuclear decommissioning trust was required. For Entergy, the transaction will result in a pre-tax book charge to earnings in an amount expected to be consistent with its previous disclosures. The estimated charge will be recorded in the third quarter 2019 and will be included in Entergy Wholesale Commodities as-reported earnings.