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Entergy handed setback over holding company - Bennington Banner
Entergy was dealt another setback in its efforts to form a new holding company for six of its nuclear reactors after a pair of New York state administrative law judges told the state’s Public Service Commission it shouldn’t issue its final decision until Feb. 11.
The judges wrote that the PSC needs time to determine whether Enexus’ forecasted financial position is "at least as good as Entergy’s," considering that Enexus is currently a shell corporation with no financial history that can be examined, as reported in SNL Energy Finance Daily on Dec. 15.
That’s especially important, wrote the judges, because Enexus would be an "unaffiliated" owner of nuclear generating facilities, and there is "no other company in the world" like it, reported SNL. Entergy wants to spin off Vermont Yankee in Vernon, Indian Point and FitzPatrick in New York, Palisades in Michigan and Plymouth in Massachusetts into an independent company named Enexus. The plants are considered merchant plants because they sell electricity directly to the power market with price controls set by the states they are located in.
When the transaction was first proposed, Entergy said that Enexus would have $4.5 billion in debt. That didn’t sit well with the PSC, so Entergy came back with the lower figure of $3.5 billion and assured the PSC that Enexus would have liquidity of $350 million and an unrestricted cash balance of $750 million.
Independence day for B&W | knoxnews.com
Babcock & Wilcox today announced that its parent company, McDermott International, is planning to separate its operating subsidiaries -- B&W and J. Ray McDermott -- into "two independent, publicly traded companies."
B&W has mutliple Oak Ridge interests, co-managing the Y-12 site in partnership with Bechtel National, and working a manufacturing contractor for USEC's American Centrifuge Project.
VPR News: Lawmakers, Regulators Question Yankee Spin Off
Lawmakers and state utility regulators are asking tough questions about a plan to spin off Vermont Yankee into a new company.
They want to know if the new corporation is taking on too much debt. And they're asking whether the company will have enough money to make major repairs and dismantle the nuclear plant after it's shut down.
VPR's John Dillon reports:
(Dillon) First the background: Entergy, the Louisiana company that owns Vermont Yankee, wants to create a new company that would own the reactor in Vernon and five other nuclear plants.
This new spin-off corporation is called Enexus. And it would control the part of Entergy's nuclear fleet that sells power to the wholesale market.
CVC pulls out of GE talks over Areva unit: report | Deals | Reuters
Private equity fund CVC has pulled out of talks with General Electric (GE.N) about a possible joint bid for the power and transmission unit of France's Areva (CEPFi.PA), a French financial news service reported on Sunday.
Spokesmen for the firms involved could not immediately be reached for comment.
State-owned nuclear reactor group Areva is selling its T&D unit and has selected Japan's Toshiba (6502.T), a consortium led by U.S.-based GE, and French partners Alstom (ALSO.PA) and Schneider Electric (SCHN.PA) as possible buyers.
Binding offers are expected for November 9 ahead of an Areva decision set for November 16.
Constellation Energy, EDF close $4.5B nuclear deal - Baltimore Business Journal:
Constellation Energy Group Inc. and EDF Group have closed their $4.5 billion joint venture, the companies said Friday.
The agreement ends a nearly year-long drama that had been playing out since the nation’s financial markets began to freefall in September 2008. The deal survived scrutinizing regulatory review and political fire that spoiled a similar deal for Constellation in 2006.
The companies put out brief statements Friday announcing the deal had closed.
UPDATE:Entergy May Try Utility Spinoff If Nuclear Plan Blocked
Entergy Corp. (ETR) remains committed to spinning off five of its nuclear power plants into a stand-alone company, but the company's chief executive suggested a possible alternative Tuesday if it can't win regulatory approval in New York.
Entergy Chairman and Chief Executive J. Wayne Leonard said the company could spin off its utility businesses into a stand-alone company to accomplish the same goal of separating its regulated utility businesses concentrated in the Southeast from its nuclear plants that sell power at market prices.
"We don't expect to go down that route, but it is a path to get you back to where you were. It just takes us longer and (requires) more regulatory approvals," said Leonard, speaking at the Edison Electric Institute's financial conference in Florida.
The New Orleans-based power company has been looking to create the nation's first stand-alone nuclear power company for two years. The deal was first stymied by the global credit freeze as Entergy needs to access billions of dollars in new debt to create the company, to be called Enexus Energy Corp. Now it's awaiting a decision from New York, where the spinoff has faced a push-back from consumer advocates and elected officials.
NRC OKs Entergy spin-off: Rutland Herald Online
Federal regulators gave two green lights to Entergy Nuclear Thursday, saying recent changes Entergy made to the proposed spin-off of its five nuclear reactors, including Vermont Yankee, did not warrant additional review.
The Nuclear Regulatory Commission also gave Entergy Nuclear another month next year to complete an important test of its reactor containment system in spring, a test that has already been postponed for five years.
In the case of the spin-off, which would create a company called Enexus, changes Entergy made to the deal recently won the support of the Vermont Department of Public Service, which acts as the ratepayer advocate. However, the Vermont Public Service Board still hasn't approved the spin-off. Additionally, New York State regulators also have yet to sign off on the deal.
The Associated Press: Vermont Senate chief questions Entergy spinoff
The Vermont Yankee nuclear plant's future as a provider of a third of the state's electricity could be in jeopardy if the plant's owner spins it off to a newly created company, the head of the state Senate said Wednesday.
The comments from Senate President Pro Tem Peter Shumlin, a Democrat who represents Vermont Yankee's home county of Windham, came as lawmakers prepare to debate early next year whether the aging reactor should get a 20-year extension on a license currently set to expire in 2012.
Plant owner Entergy Nuclear's plan to spin off Vermont Yankee and five other reactors into a newly created company could make it a "tough sell" to get the Legislature — the only one in the country that has given itself the power to vote up or down on a nuclear license extension — to approve the continuance.
VT pol says Yankee nuke plan cound hinder license
The head of the state Senate says it will be much more difficult for the Vermont Yankee nuclear plant to win legislative approval for a 20 year license extension if the plant gets a new owner.
On Wednesday Senate president Pro Tem Peter Shumlin criticized the Department of Public Service for reversing itself and deciding to support a plan by Entergy Nuclear to create a new company that would own Vermont Yankee and five other nuclear plants.
Shumlin says the transaction means Vermont Yankee will no longer be owned by a financially strong company, but by a new firm with $4.7 billion in what he calls "junk bond" debt.
EnergySolutions in IPO dispute - Salt Lake Tribune
Utah's EnergySolutions Inc. is facing a new threat, one that goes beyond attempts to block it from burying foreign radioactive waste at its Tooele County disposal site.
A proposed shareholder class-action lawsuit, filed in the U.S. District Court for the Southern District of New York, is asking that EnergySolutions' initial public offering (IPO) of two years ago and a secondary offering the next year be rescinded.
The lawsuit contends the company and its officers and directors, in the offering prospectus, made false and misleading statements about EnergySolutions' financial condition, its business and future prospects, thereby inflating the price of the company's securities.
EDF In Talks With E.ON Over Taking A Stake In German Company - Nuclear Power Industry News
EDF is leading the drive to build the next generation of nuclear reactors in Britain
According to a report by The Times Online, EDF, the heavily indebted French power group, is close to agreeing a big asset swap with E.ON, its German rival, but it played down reports recently that it was also considering the sale of a 20 percent stake in British Energy, the UK’s nuclear generator.
EDF, which is leading the drive to build the next generation of nuclear reactors in Britain, has begun a sweeping review of its businesses as it aims to cut its €37 billion (£33.5 billion) debt pile.
In May, EDF sold a 20 per cent stake in British Energy, which it bought only a year ago, to Centrica, the British Gas owner, for €2.5 billion.
Officials have denied a report in La Tribune that EDF was considering selling a further 20 percent stake in the company to help to fund its plans to build four nuclear reactors in Britain by 2025 however, they did not rule out the possibility.
Britain's nuclear caretaker privatised in Babcock sale | Business | guardian.co.uk
• £50m sale 'good value for taxpayers', says Mandelson
• Opposition warns against further decommissioning levies
Dounreay nuclear power station. It was shut in 1993 but its safety and decommissioning will now fall into the hands of private firm Babcock. Photograph: Murdo MacLeod
The body responsible for decommissioning and cleaning up Britain's fleet of nuclear power stations was sold today in the latest privatisation of part of the UK's nuclear industry.
UKAEA, the commercial arm of the United Kingdom Atomic Energy Authority, has been bought by Babcock International Group for £50m.
Business secretary Lord Mandelson claimed the deal "generates good value for taxpayers", but opposition politicians have previously voiced concerns over the sale.
Political Headwinds Hit a Reactor Project on the Chesapeake - NYTimes.com
The proposed Calvert Cliffs 3 reactor in southern Maryland has been considered a leader in the nuclear power industry's hopes for a U.S. renaissance.
It is a finalist for a multibillion-dollar Energy Department construction loan guarantee, and for months, the political and financial signals facing it have been green lights. Its developer, Baltimore-based Constellation Energy, would share the deep pockets of its French partner, Électricité de France International (EDF), the largest nuclear power provider in the world. EDF has offered Constellation $4.5 billion for a 49.99 percent share in the Maryland company's nuclear power projects, including the proposed new reactor.
Department of Energy - US Energy Secretary Chu Announces Finalized $5.9 Billion Loan for Ford Motor Company
Today, Secretary Steven Chu announced that the Department of Energy has closed on its loan offer of $5.9 billion to Ford Motor Company to transform factories across Illinois, Kentucky, Michigan, Missouri, and Ohio to produce more fuel efficient models. The loan is part of the Department’s Advanced Technology Vehicles Manufacturing program, which supports the development of innovative, advanced vehicle technologies to create thousands of clean energy jobs while helping reduce the nation’s dangerous dependence on foreign oil. The loan for Ford Motor Company is the first to be finalized since the program was appropriated in the fall of 2008.
This announcement builds on steps taken by the Obama Administration earlier this week to require an average fuel economy of 35.5 miles per gallon in the year 2016. That standard will reduce oil consumption by an estimated 1.8 billion barrels, prevent greenhouse gas emissions of approximately 950 million metric tons, and save consumers more than $3,000 in fuel costs. The funding announced today will help Ford meet those targets.
China nuclear firm swoops on Australia uranium firm | Markets | Reuters
Chinese state-owned power producer China Guangdong Nuclear Power Holding Co. Ltd has agreed a takeover bid for Australian uranium explorer Energy Metals (EME.AX), the Australian company said on Tuesday.
Under the deal, the Chinese firm will buy up to 70 percent of Energy Metals for A$1.02 per share and underwrite a 1-for-9 rights issue by the Australian firm at 90 cents a share.
Energy Metals's 40 percent shareholder, Jindalee Resources (JRL.AX) Ltd, intends to accept the Chinese bid, in the absence of a superior offer, Energy Metals said. Energy Metals shares last traded at 86 cents a share, giving it market value of about A$100 million ($86 million). ($1=1.169 Australian Dollar) (Reporting by Mark Bendeich; Editing by Jonathan Standing)
Political influences suspect in some companies getting loan guarantees | chillicothegazette.com | Chillicothe Gazette
About three years ago, the U.S. Enrichment Corp. in Piketon contracted with Honeywell to set up a team of skilled professionals to assist with the American Centrifuge process. There is a large worldwide market for fuel grade uranium, and the demand is expected to increase as new nuclear plants come on line. It was anticipated that the Department of Energy would give USEC a $2 billion loan guarantee, so it could secure private financing to continue the program. Our politicians indicated they were in favor the loan guarantee.
Then, last month, DOE decided it would put off the loan guarantee for six months. This caused the skilled team of more than 100 people at Honeywell to lose their jobs.
All this was bad enough, but then the media indicated our government had given a $2 billion loan to General Electric (this was not a guarantee, but an actual loan). Then the media announced our government has encouraged a $2 billion loan guarantee to Brazil's Petrobras oil company, so it can drill for oil off that coast.
N.Y.: No ruling on Entergy nuclear spinoff in 2009 | LoHud.com | The Journal News
New York utility regulators likely will not decide on power provider Entergy Corp.'s plan to spin off its wholesale nuclear power generators into a separate company until 2010.
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New Orleans-based Entergy had hoped for a decision in November on whether it may place six reactors under a separate publicly traded company Enexus Energy Corp.
But two administrative law judges for the state Public Service Commission have ruled that a determination still is needed on whether the new company will have the financial capability to run three of the units in New York: two at Indian Point in Buchanan and one at James A. Fitzpatrick in Oswego County.
PSC staff has concerns that long-term unsecured bonds issued for the spinoff might result in a low Enexus bond rating, thus limiting the new company's financial capacity.
The judges have proposed a schedule under which environmental issues dealing with the spinoff would be heard by the PSC in December, followed by a ruling in January.
Entergy spokesman Michael Burns said if the deal is approved in January, the spinoff could occur in April.
FPL pay and raises disclosed, defended - Technology - Bradenton.com
When Florida Power & Light chief Armando Olivera was asked Tuesday whether he and company executives would be willing to give up a pay raise to help struggling consumers with their bills, he offered a short answer:
“No,” he said, “because that would be short- sighted.”
Olivera, who as FPL’s CEO is paid $3.6 million a year, told state regulators that although the economy is tight, executive pay is crucial to the successful operation of the company and the pay packages offered by FPL are justified.
FPL defends rate hike request as governor joins public opposition
Florida Power & Light Co. officials defended a $1.3 billion rate increase despite opponents' objections that it will pad the pockets of high-paid executives and reap bigger profits, even as Gov. Charlie Crist rebuked the hike as "excessive."
FPL CEO Armando Olivera insisted that the utility needs to raise customers' rates to make its operations more fuel-efficient and that the hike would keep customers' electric bills from climbing even more in the long run.
"We're trying to come forward with what we think is a balanced approach. I think that the fact that our rates are the lowest in the state is a reflection of what we are," said Olivera, who spent all day on the witness stand for the Public Service Commission proceedings.
It was the second day of the rate hearings scheduled to last two weeks. Juno Beach-based FPL, which serves 4.5 million customer accounts from northeast Florida to Miami, is asking for its first base rate increase since 1985.
Regulators order FPL to disclose executive pay | HeraldTribune.com | Sarasota Florida | Southwest Florida's Information Leader
Florida's two biggest electric utilities must disclose how much they pay their executives and other top employees, state utility regulators decided Tuesday.
Florida Power & Light Co. immediately said it would appeal the Public Service Commission's ruling. A Progress Energy Florida spokesman said his company has not yet decided if it will take the issue to court.
The five commissioners unanimously ordered the companies to disclose the compensation of those making more than $165,000, saying that information is vital to helping them decide whether to raise customers' rates in January.
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