Entergy to Continue Operating Palisades Power Plant Until Spring 2022, Under Existing PPA With Consumers Energy

Entergy Corporation announced that it plans to operate Palisades Power Plant in Covert, Michigan, until the spring of 2022, under the existing Power Purchase Agreement (PPA) with Consumers Energy.

"In light of the Michigan Public Service Commission's order issued September 22, which granted Consumers Energy recovery of only $136.6 million of the $172 million it requested for the buyout of the PPA, the parties have agreed to terminate the buyout transaction," said Charlie Arnone, site vice president and Entergy's top official at Palisades.

The timing of the plant's closure is significant given that LSEs, including retail suppliers, must meet forward capacity showings starting with the 2018 delivery year, with locational requirements due to be imposed on retail suppliers starting in 2022

The announcement reverses Entergy's December 2016 decision to close Palisades on October 1, 2018, "but Entergy remains committed to its strategy of exiting the merchant nuclear power business," Entergy said in a news release

The impact of Entergy's decision on its free cash flow is expected to be positive $100 million to $150 million compared to the PPA amendment with Consumers Energy.