Entergy (ETR) to Sell RISEC in $490M Deal

Entergy (NYSE: ETR) announced that its wholesale generation division, Entergy Wholesale Commodities, has entered into an agreement to sell its 583-megawatt Rhode Island State Energy Center (RISEC), located in Johnston, R.I., to Carlyle Power Partners. The facility is a natural gas-fired, combined-cycle generating plant that entered commercial service in 2002.

The base sales price is approximately $490 million, subject to closing adjustments. Entergy Wholesale Commodities purchased the plant for $346 million in December 2011. Entergy expects to record a net gain of approximately $0.50 per share assuming closing of the sale occurs in the fourth quarter 2015, subject to working capital and other adjustments. The gain on sale will be classified as a special item, and as such, excluded from operational earnings.

"Our strategy for EWC is focused on being disciplined about reducing risk and freeing up financial resources for other opportunities," said Entergy Chairman and CEO Leo Denault. "RISEC has been a very good investment for us, and its sale is consistent with that strategy."

The transaction is contingent upon, among other things, obtaining necessary regulatory approval from the Federal Energy Regulatory Commission and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Closing is targeted for the end of 2015.

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, including nearly 10,000 megawatts of nuclear power, making it one of the nation's leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $12 billion and approximately 13,000 employees.

You May Also Be Interested In

• IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
• AZZ, Inc. (AZZ) Announces Proposed 4M Share Offering
• Eyenovia Inc (EYEN) Provides Clinical and Scientific Update on Mydcombi and Clobetasol