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BUCHANAN, NY-Entergy Corp. of New Orleans and Consolidated Edison Co. of New York Inc. report that they have reached a sales agreement whereby Entergy will buy Indian Point I and II nuclear power plants in a deal valued at $602 million. The sales price includes a provision that Entergy will buy approximately $100 million in nuclear fuel from Con Edison.

Entergy’s nuclear division is based in Jackson, MS and its Entergy Nuclear Northeast operation is headquartered in White Plains. The firm reported in September that it had leased 60,000 sf of space at 440 Hamilton Ave., in Downtown White Plains. Indian Point II and its associated gas turbines, which have a combined energy capacity of 1015 MWs, have not been in operation since February of this year after a rupture of a generator turbine line caused a leak. A Con Edison spokesman said the firm hopes to have the Indian Point II plant re-started by year’s end. Indian Point I has been shut down and in “safe storage” since the early 1970s, Con Edison officials note.

While the company reported that it won a bid for the Indian Point I and II nuclear power plants in a recent auction for Con Edison conducted by Morgan Stanley Dean Witter, the firm is nearing completion of its purchase of the Indian Point III nuclear power plant in Buchanan and the James A, Fitzpatrick plant in Oswego, NY from the New York Power Authority. That deal has been valued at $970 million.

Eugene R. McGrath, chairman and chief executive officer of Con Edison comments, “This transaction underscores Con Edison’s strategy of concentrating on energy delivery and supports New York State’s goal of fostering a competitive marketplace.”

McGrath adds that as part of the purchase agreement, all current union contracts will be honored. In addition, all of Con Edison’s 680 nuclear employees will have their present salaries and benefits maintained. The two companies also report that they have entered a power purchase agreement to sell the full output of Indian Point 2 to Con Edison through the end of 2004.

“The key point is both Indian Point operating units will be managed by a single organization with more than 25 years of proven operating experience–and that will benefit New York’s consumers and economy,” says J. Wayne Leonard, chief executive officer of Entergy. “With this purchase, Entergy’s growth strategy in the Northeast is coming together. Pilgrim, our first purchase last year, is making a strong contribution to our 2000 earnings, significantly exceeding our forecast. These clean-air nuclear units also demonstrate our commitment to environmental leadership.”

With the addition of Indian Point II to its nuclear power plant portfolio, Entergy now has four operating plants. The company purchased Pilgrim Station in Plymouth, MA in 1999. Enetergy is also managing the decommission of the Maine Yankee Plaint in Wiscasset and at the Millstone Unit I plant in Waterford, CT.

The sales agreement for the Indian Point I and II nuclear power plant facilities must meet the approval of the Nuclear Regulatory Commission, the Federal Energy Regulatory Commission, the New York State Public Service Commission and other regulatory agencies. The deal is expected to close by mid-2001.

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