US nuclear plant sold for $380 million
12 April 2007
Consumers Energy has completed the sale of the Palisades nuclear power station to Entergy Corporation for $380 million.
Broken down, the price comes to $242 million for the plant ($301/kW), plus $83 million for nuclear fuel stocks and $55 million for other assets such as spare parts.
As part of the purchase, Entergy will sell 100% of the plant's output back to Consumers Energy for 15 years. Although some consumer groups and Michigan's attorney general had argued that the sale would be bad for customers, the Michigan Public Service Commission estimates that customers stand to save up to $700 million in energy costs over that time.
Palisades is a single unit 798 MWe pressurized water reactor (PWR) in Michigan. The plant started commercial operation on 31 December 1971, and recently received a 20-year operating licence renewal from the US Nuclear Regulatory Commission (NRC), extending its current licence to 2031. NRC approved the transfer of the plant's operating licence to Entergy on 6 April.
New Orleans-based Entergy owns and manages 11 nuclear power plants and manages one plant for the State of Nebraska. The company is also involved in plans to construct a new nuclear power plant at Grand Gulf in Missouri, which received an Early Site Permit from the NRC in March. With the sale of Palisades, Consumers Energy's generating portfolio no longer contains nuclear - it has completed decommissioning its other nuclear power plant, Big Rock Point, which shut down in 1997 after 35 years of operation and returned to greenfield status in 2006.
Further information
Consumers Energy Entergy Nuclear
Nuclear Regulatory Commission
WNA's Nuclear power in the USA information paper: Appendix 1. Power Plant Purchases
WNN: Palisades gets licence renewal