News Analysis

Deck: 
Entergy's Original Bid
Fortnightly Magazine - June 15 2000
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News Analysis

 

NYPA's Nuke Auction: More at Stake Than Price?


 

Dominion had the high offer in the nuke plant bidding wars, but Entergy's willingness to cover potential tax liability on the decommissioning fund won the deal.

The bidding wars between Entergy Corp. and Dominion Resources for control of the New York Power Authority's FitzPatrick and Indian Point 3 nuclear power plants signal that a real competitive market for such assets may evolve. But while this sale set a record high on a dollar-per-kilowatt basis, it was not quite as impressive as many reports suggested.

On Nov. 2, 1999, the NYPA and Entergy announced that they had entered into exclusive negotiations for the sale of NYPA's James FitzPatrick and Indian Point 3 nuclear plants. By Feb. 15, the partners had hammered out an agreement for the sale. But just weeks later, on Feb. 24 and March 10, Dominion Resources submitted offers to purchase the two plants. Dominion claimed that its offer exceeded Entergy's. Entergy responded on March 16 by announcing that it had increased its offer.

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