PSC Rejects Plan to Spin-Off Indian Point Reactors
March 26, 2010
Riverkeeper Team
The New York State Public Service Commission (PSC) rejected the proposal submitted by Entergy Corporation and its subsidiaries to spin-off six nuclear power plants, including three in New York, to a new business entity, Enexus Energy Corporation. The decision by the five Commissioners reflected the recommendation by their Advisory staff, who found that the spin-offs were not in the public interest, citing the significant financial risks posed by the transaction, including Enexus’ future junk bond status and $3.5 billion debt on day one of its ownership of Indian Point.
Riverkeeper intervened in opposition to the spin-off in 2008, citing concerns with Enexus’ ability to safely operate and decommission Indian Point. In particular, Riverkeeper argued that Enexus’ excessive indebtedness would render it financially unable to meet future financial obligations regarding the installation of environmentally friendly closed cycle cooling and the cleanup of radioactively contaminated groundwater under the reactors.
