Entergy has offered to pay $50 million for the Vermont Yankee nuclear plant, more than double the purchase price under AmerGen Energy’s initial $23.7 million purchase agreement.
The Vermont Public Service Board (VPSB) recently reopened bidding for the 510MW BWR so it could review the Entergy offer. The VPSB may also allow other interested parties to submit bids.
AmerGen initially bid $23.7 million for the plant, but upped the offer to $93.8 million after the VPSB indicated its dissatisfaction with the price. AmerGen’s revised bid, however, assumed the deal would close 1 January 2001, and contained a clause reducing its value by $90,000 a day until actual closing. Following Entergy’s bid the VPSB rejected the amended AmerGen offer. In response, AmerGen have suspended the reductive clause making their offer, according to AmerGen, about $20 million higher than Entergy’s.
Entergy also said it would pay each non-union plant employee a $1,000 bonus, double AmerGen’s offer. In addition, Entergy has offered a second, substantially better proposal if Vermont Yankee owners select Entergy as the preferred buyer to enter into an exclusive negotiating period of 60 days. Entergy claims that such a selection would save the owners considerable costs in auction fees.
Entergy’s bid – its second for the unit – expires at the end of 2001.
If Entergy is ultimately successful and the deal closes, Vermont Yankee would be the fifth operating northeastern nuclear power plant the New Orleans, Louisiana-based company has purchased. In 1999, Entergy bought the 669MW Pilgrim nuclear plant in Massachusetts. In 2000, Entergy bought the 970MW Indian Point 3 and 832MW FitzPatrick in New York. In November 2000, Entergy agreed to buy Indian Point 2 in New York plus the shutdown Indian Point 1.
The Indian Point 2 nuclear plant in New York resumed operation on 3 January 2001 for the first time in eleven months after a leak from its steam generators released radioactive steam into the air, causing an alert at the plant.
VENUE FIRE & SAFETY 2001 |
1 Birdcage Walk, London
The historical home of the Institution of Mechanical Engineers, 1 Birdcage Walk is situated in the centre of Westminster, London, between Parliament Square and St James’s Park. It is served by Westminster underground station and is just a couple of minutes walk from the River Thames. DELEGATES FEES CONFERENCE HOTELS To book or for further information please contact Julie Rossiter |
EXHIBITION |
There will be an exhibition running alongside the conference, giving companies the chance to display their products and services. This will be in the Marble Hall, adjacent to the conference room, where tea/coffee and lunches will also be served. Exhibitors will be able to gain access to an audience of the industry’s leading professionals at this very respected event. Contact Scott Galvin: Tel: +44 1322 394 512 Fax: +44 1322 273 748 sgalvin@wilmington.co.uk |
Please contact Julie Rossiter to book your place or request more information. Tel: +44 1322 394706 Fax: +44 1322 276748 Email: jrossiter@wilmington.co.uk |