Entergy Texas Agrees to Buy Portion of Union Power Station
THE WOODLANDS, December 14, 2014 - In a move that will help meet the energy needs of southeast Texas while keeping costs to customers down, Entergy Texas, Inc. today announced that it has entered into an agreement to purchase a portion of the Union Power Station near El Dorado, Arkansas.
“We are focused on providing clean, reliable, low cost service to our customers while supporting growth in the communities we serve,” said Sallie Rainer, Entergy Texas president and chief executive officer. “The acquisition of this highly efficient unit will help us modernize our generation fleet and meet increased demand in the region.”
The Union Power Station, a 1,980-megawatt (summer rated) generating facility, entered commercial service in 2003 and consists of four highly efficient combined-cycle natural gas-fired generating units, or CCGTs, each rated at 495 MW. Under the Asset Purchase Agreement, Entergy Texas and Entergy Arkansas, Inc. have each agreed to acquire one unit, and Entergy Gulf States Louisiana, L.L.C. has agreed to acquire two units.
The plant purchase price is approximately $948.0 million ($479/kW), or $237.0 million per unit, subject to adjustments. The purchase price is approximately half the cost to build a comparable new CCGT facility.
The purchase is contingent upon, among other things, obtaining necessary approvals, including acceptable cost recovery, from the various federal and state regulatory authorities and the expiration of the waiting period under the Hart-Scott-Rodino antitrust law. The targeted closing date is late 2015.
Entergy Texas, Inc. delivers electricity to more than 426,000 customers in 27 counties. It is a subsidiary of Entergy Corporation. Entergy 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 more than 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.