Power provider Entergy Corporation has agreed to financial concessions in an attempt to win approval from New York regulators for a proposed spin-off of six nuclear units.
Today, the New York State Public Service Commission is scheduled to consider whether to allow New Orleans-based Entergy to create a separate, publicly traded company known as Enexus Energy Corporation.
Amid financial concerns raised by the commission’s staff, Entergy has proposed cutting Enexus’ debt by $500 million to no more than $3 billion and restricting dividend payouts to Enexus stockholders.
Enexus also will pay up to $300 million to New York’s energy efficiency fund if prices rise and if future prices exceed certain levels. The fund offers a hedge for some consumers when prices spike.