SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date earliest event reported) March 28, 2000
Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
1-11299 ENTERGY CORPORATION 13-5550175
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504) 576-4000
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Item 5. Other Events
On March 28, 2000, Entergy Corporation's ("Entergy") nuclear
business signed an agreement with the New York Power Authority
("NYPA") for the acquisition of NYPA's 825 MW James A.
FitzPatrick nuclear power plant ("JFP") located near Oswego, New
York and NYPA's 980 MW Indian Point 3 nuclear power plant ("IP3")
located in Westchester County, New York. Entergy will pay $50
million in cash at the closing of the purchase, plus seven annual
installments of approximately $108 million each commencing one
year from the date of the closing and eight annual installments
of $20 million each commencing eight years from the date of the
closing. Entergy projects that these installments will be paid
from the net proceeds of the sale of power from the plants and
that Entergy will provide an additional $100 million of funding.
Management expects to close the acquisition by the fourth quarter
of 2000.
Pursuant to a power purchase agreement (PPA), NYPA will
purchase 100% of IP3's output for $36/MWh through 2004 and an
average of 37% of JFP's output for $32/MWh through 2004. Under
the PPA, the power is required to be delivered at 85% of IP3's
output and 85% of the contracted percentage of JFP's output, with
a financial true-up to NYPA every two years in the event output
falls below required averages. Pursuant to a separate PPA, NYPA
is committed to purchase the remaining output of JFP at $29/MWh
through 2003. NYPA will retain the decommissioning trust fund
and the liability to decommission the plants up to the amount
that is the lesser of the funds in the decommissioning trust or
an inflation adjusted cost amount, which is $1.18 billion in 2000
dollars. The current amount in the trust is approximately $630
million. NYPA has the option to transfer the decommissioning
trust and the decommissioning liability to the Entergy
subsidiaries that are acquiring the plants when the current
nuclear operating license for the plants expire (2014 for JFP and
2015 for IP3), or decommissioning commences, whichever is sooner.
At the time of such transfer, if the trust funds exceed the
inflation adjusted cost amount (estimated to be between $1.9 to
$2.2 billion in 2015), the amount of the excess funds is payable
to NYPA. In the event NYPA does not transfer the trust funds,
NYPA has agreed to enter into a decommissioning agreement with
Entergy Nuclear to perform the decommissioning of the plants for
a fee equal to the inflation adjusted cost amount. Entergy
management believes that NYPA's decommissioning fund will be
adequate to cover future decommissioning costs.
Subject to certain conditions, Entergy's nuclear business
has agreed to pay NYPA up to $10 million annually for up to 10
years if Entergy acquires ownership of the Indian Point 2 nuclear
power plant, commencing on the second anniversary date of such
acquisition, and up to $2 million annually for up to 10 years if
Entergy acquires the Nine Mile Units 1 and 2 nuclear power
plants, commencing on the second anniversary date of such
acquisition. NYPA also will be paid $2.5 million annually by each
of the two Entergy subsidiaries that acquire the plants for up to
twenty years if the Nuclear Regulatory Commission grants an
extension of the current nuclear operating license, such payment
to commence on the first anniversary of the expiration of the
respective current licenses.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
Entergy Corporation
By: /s/ Nathan E. Langston
Vice President and Chief
Accounting Officer
Dated: March 31, 2000