The Entergy board has approved a plan to separate its non-utility nuclear business from regulated utility work, through a tax-free spin-off of the non-utility nuclear business.
The new company, given an interim name of SpinCo, will be an independent publicly traded body.
SpinCo and Entergy intend to enter into a nuclear services joint venture, as equal owners. Once the transaction is complete, Entergy’s shareholders will own 100% of the common equity in both SpinCo and Entergy.
SpinCo’s business is expected to consist of the non-utility nuclear assets, such as Pilgrim nuclear plant, the James A Fitzpatrick and Indian Point plants, Palisades and Vermont Yankee, in addition to a power marketing operation.
Entergy’s business will consist of the current five regulated utility operating subsidiaries, System Energy Resources, the related services subsidiaries System Fuels, Entergy Operations and Entergy Services, and the remaining Entergy subsidiaries.
The joint venture is expected to operate the nuclear assets owned by SpinCo. It will also offer nuclear services to third parties, including decommissioning, plant relicensing and plant operations for the Cooper plant and others.
Entergy Nuclear Operations will supplement its application filed on 30 July 2007 to the Nuclear Regulatory Commission, seeking indirect transfer of control of the operating licenses for the non-utility nuclear fleet, to incorporate the planned business separation.