Entergy completes first U.S. nuclear plant purchase

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

Tuesday July 13, 1:50 pm Eastern Time

Entergy completes first U.S. nuclear plant purchase

PLYMOUTH, Mass., July 13 (Reuters) - Entergy Nuclear 
completed the first purchase of a U.S. nuclear plant on Tuesday, 
closing a deal to acquire the Pilgrim Station plant from Boston 
Edison for $81 million.  

``This marks the first completed sale in the history of the industry,'' 
said Jerry Yelverton, chief executive of Entergy's nuclear 
companies.  

Pilgrim Station, a 670-megawatt boiling water reactor located in 
Plymouth, Mass., on Cape Cod Bay, is also the first U.S. nuclear 
plant to be sold through a competitive bid in a process considered 
to be a model for the nuclear industry, the company pointed out.  

Entergy said it expects to realize a 5 cents a share earnings 
contribution in 1999 from Pilgrim's operation. The First Call
consensus estimate of the utility holding company's earnings this 
year is $2.02 per share.

The company said it the price paid to Boston Edison includes 
nuclear fuel and the plant's 1600-acre site. The transaction
includes power purchase agreements through 2004.

In addition, Entergy said, credits of up to $31 million potentially 
available on future nuclear insurance premiums would be 
transferred to Boston Edison. Boston Edison, a BEC Energy 
(NYSE:BSE - news) utility subsidiary, will fully fund the 
decommissioning trust with $471 million.  

``Pilgrim is the first of many plants we plan to acquire,'' said Don 
Hintz, president of Entergy Corp.(NYSE:ETR - news) ``We intend 
to be a major player in the new market with a large portfolio of well-
run, competitive nuclear units. This sale is a good first step toward 
achieving that goal.''  

Entergy Nuclear is a non-regulated subsidiary of Entergy. The New 
Orleans-based utility holding company's regulated operations 
include four nuclear power plants capable of producing 4,900 
megawatts of electricity.  

Entergy Nuclear is managing decommissioning activities at the 
Maine Yankee nuclear plant in Wiscasset, Maine, and the 
Millstone 1 nuclear plant in Waterford, Conn. 

------------------------
Sandy Perle
E-Mail: sandyfl@earthlink.net
Personal Website: http://www.geocities.com/capecanaveral/1205

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