8-KOther Events

ENTERGY CORP /DE/ 8-K Report, Corporate Update (Mar 1, 2016)

Filed March 1, 2016For Securities:ETR

Summary

Entergy Corporation (ETR) announced a significant development regarding its acquisition of the Union Power Station. On February 29, 2016, the company, through its subsidiaries Entergy Arkansas, Inc., Entergy Gulf States Louisiana, L.L.C., and Entergy Texas, Inc., received the final regulatory approval from the Federal Energy Regulatory Commission (FERC) for the purchase. This marks a critical step towards completing the transaction, which was initially agreed upon in December 2014. The Union Power Station is a substantial 1,980 MW natural gas-fired power generation facility located in Arkansas. The acquisition involves multiple Entergy operating companies taking ownership of different power blocks and undivided interests in related assets. The closing of the purchase is anticipated to occur as soon as practicable, pending the fulfillment of any remaining closing conditions. This acquisition is a strategic move for Entergy, potentially enhancing its generation capacity and operational footprint in the region.

Key Highlights

  • 1Entergy Corporation subsidiaries received final FERC approval for the Union Power Station acquisition on February 29, 2016.
  • 2The Union Power Station is a 1,980 MW natural gas-fired power generation facility.
  • 3The acquisition was initially agreed upon in December 2014.
  • 4The transaction involves multiple Entergy operating companies: Entergy Arkansas, Entergy Gulf States Louisiana, and Entergy Texas (with Entergy New Orleans and Entergy Louisiana succeeding to certain obligations).
  • 5Closing of the purchase is expected to be completed promptly, subject to remaining conditions.
  • 6This represents a key milestone in a significant asset purchase for Entergy's generation portfolio.

Frequently Asked Questions

The Union Power Station is a 1,980 MW natural gas-fired power generation facility located near El Dorado, Arkansas. It consists of four natural gas-fired, combined-cycle turbine power blocks, each rated at 495 MW.

The primary entities involved are Entergy Arkansas, Inc., Entergy Gulf States Louisiana, L.L.C., and Entergy Texas, Inc. Through subsequent successions and business combinations, Entergy New Orleans, Inc. and Entergy Louisiana, LLC are also involved in fulfilling acquisition obligations.

This approval was the final regulatory clearance required to complete the transaction. It signifies that regulatory hurdles have been overcome, paving the way for the closing of the Union Power Station acquisition.

The company expects the closing of the purchase to be completed as promptly as practicable, provided that all remaining conditions to closing are satisfied or waived.