Entergy adds two nukes to growing Northeast fleet

["Sandy Perle" <sandyfl@earthlink.net>]

Monday February 14, 8:50 pm Eastern Time

Entergy adds two nukes to growing Northeast fleet

NEW YORK, Feb 14 (Reuters) - Entergy Nuclear, a subsidiary of the New 
Orleans-based utility Entergy Corp. (NYSE:ETR - news), took a huge 
step Monday toward becoming one of the biggest power generators in 
the Northeast U.S. through the purchase of two nuclear power stations 
in New York.  

Entergy announced it plans to spend $638 million for the New York 
Power Authority's two nuclear facilities -- Indian Point 3 and James 
Fitzpatrick -- with a combined generating capacity of 1,790 
megawatts.  

``We are assembling a fleet of nuclear plants in the Northeast that 
mirrors the group of five units we have operated safely and cost 
effectively in our service area (in the Gulf Coast) for more than 20 
years,'' Entergy Nuclear President and Chief Executive Jerry 
Yelverton said in a statement.  

The move, amassing power plants in a region some one thousand miles 
from its traditional service territory, is the direct result of 
deregulation of the Northeast power market, which is turning the 
generating business over to the open market.  

``Prior to deregulation, Entergy could not -- no one could -- make 
money through the ownership and operation of generation outside of 
its service territory,'' Barry Abramson, a utility analyst at 
PaineWebber said.  

``The important part of this deal is it gives Entergy a strategic 
advantage in acquiring other plants in New York because of the 
location of the state's nuclear plants,'' Abramson said.  

If Entergy Nuclear can complete the acquisition of NYPA's nuclear 
units, it would be in a good position to gain control over all of New 
York's 5,000 megawatts of nuclear generation, which accounts for 
about one sixth of the state's close to 30,000 megawatts of 
generating capacity.  

The Fitzpatrick station sits on the same site as the Nine Mile Point 
nuclear power station on the shores of Lake Ontario at Scriba, N.Y.  

While Indian Point 3 is adjacent to Consolidated Edison Inc.'s 
(NYSE:ED - news) (Con Ed) Indian Point 2 nuclear unit, 35
miles north of New York City along the Hudson River in Buchanan, N.Y.

Earlier this month, Con Ed opened an auction seeking bidders for 
Indian Point 2.

In addition, Entergy already has an agreement with RGS Energy Group 
Inc. (NYSE:RGS - news) of Rochester, N.Y. to operate the Nine Mile 
Point station should RGS succeed in its bid to block AmerGen Energy 
Co.'s standing agreement to buy a majority stake in the station.  

AmerGen's bid is now being considered by the New York Public Service 
Commission (PSC), but Entergy has also filed with the state PSC to 
buy Nine Mile Point in case both AmerGen's and RGS' bids fall 
through.  

AmerGen and Entergy Nuclear, the only two companies actively buying 
nuclear power plants in the U.S., said they are interested in Nine 
Mile, Indian Point 2 and the other nuclear units expected to hit the 
auction block in the Northeast over the next year -- Seabrook in New 
Hampshire and the Millstone units 1 and 2 in Connecticut.  

AmerGen, a U.S.-British joint venture formed in 1997 between PECO 
Energy Co. (NYSE:PE - news) of Philadelphia and British Energy Plc 
(quote from Yahoo! UK & Ireland: BGY.L) of Edinburgh, Scotland, also 
has other nuclear assets in the region and is in the process of 
buying the nearby Vermont Yankee nuclear station in neighboring 
Vermont.  

Entergy Nuclear owns the Pilgrim nuclear station in Massachusetts.

The NYPA Board of Trustees, Entergy's Board of Directors, the U.S. 
Nuclear Regulatory Commission and other regulatory agencies must 
approve the sale of the two New York plants. 

------------------------------------------------------------------------
Sandy Perle					Tel:(714) 545-0100 / (800) 548-5100   				    	
Director, Technical				Extension 2306 				     	
ICN Worldwide Dosimetry Division		Fax:(714) 668-3149 	                   		    
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