Entergy announcement - FitzPatrick Nuclear Power Plant

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Date: Nov. 2, 2015

For Release: Immediately

Contact: ay Jones

Media Relations)

Paula Waters

(Investor Relations)504) [email protected]

(504) [email protected]

Entergy to Close James A. FitzPatrick Nuclear Power Plant in Central New York

NEW ORLEANSEntergy Corporation (NYSE: ETR) announced today that it will

close the James A. FitzPatrick Nuclear Power Plant in Scriba, NY, in late 2016 or early 2017.

The company said its decision to close the plant is based on the continued deteriorating

economics of the facility. The key drivers cited by the company include significantly reduced

plant revenues due to low natural gas prices, a poor market design that fails to properly

compensate nuclear generators like FitzPatrick for their benefits, as well as high operational

costs.

Entergy is reporting today to the operator of the electric grid, the New York Independent

System Operator, and to the New York State Public Service Commission that it will retire the

plant at the end of the current fuel cycle.

Entergy and New York State officials worked tirelessly over the past two months to

reach a constructive and mutually beneficial agreement to avoid a shutdown, but were

unsuccessful.

Given the financial challenges our merchant power plants face from sustained wholesale

power price declines and other unfavorable market conditions, we have been assessing each

asset, said Leo Denault, Entergys chairman and chief executive officer. As part of this

review, we previously announced the closure of the Pilgrim Nuclear Generating Station in

Entergy Corporation639 Loyola Ave.New Orleans, LA 70113

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Entergy to Close James A. FitzPatrick Nuclear Power PlantPage 2November 2, 2015

Massachusetts and have now decided that despite good operational performance, market

conditions require us to also close the FitzPatrick nuclear plant, Denault continued.

FitzPatrick employs more than 600 workers, and has been a part of the Oswego County

community since it began generating electricity in 1975.

We recognize the consequences of the shutdown for our employees and the surrounding

community and pledge to do our best to support both during this transition. As a company, we

are committed to ensuring the well-being of our employees, and appreciate their continued

dedication to making safe, clean, secure and reliable operations a top priority, Denault said.

Additionally, to the community of Oswego, we would like to express our gratitude for its

overwhelming support and willingness to stand with us for more than 40 years.

Financial Factors Behind Decision

The decision to close the FitzPatrick plant was based on the following factors that make

it no longer economically viable:

Sustained low current and long-term wholesale energy prices, driven by record low

gas prices due to the plants proximity to the Marcellus shale formation, have reduced

the plants revenues. Current and forecast power prices have fallen by about $10 per

megawatt-hour, which equates to a projected annual loss of more than $60 million in

revenues for FitzPatrick.

Flawed market design fails to recognize or adequately compensate nuclear generators

for their benefits. FitzPatrick and other nuclear power generators provide a key fuel

diversity benefit with significant climate-related advantages. In addition to generating

virtually carbon-free electricity, nuclear plants offer onsite fuel storage, maintain grid

reliability and serve as a significant source of large-scale 24/7 energy generation.


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The plant carries a high cost structure because it is a single unit. Entergy has already

invested hundreds of millions of dollars to improve FitzPatricks reliability, safety

and security. While the company will always make investments needed to assure safe

operations, it considers the long-term financial viability of operating plants in

markets that ignore the benefits of nuclear power.

The locational constraints reduce the plants revenues. The region has excess power

supply and low demand.

Entergys Commitment to Nuclear Power

When FitzPatrick closes, Entergy will have one power generating facility in operation in

New York State, the Indian Point Energy Center in Buchanan, NY.

Entergy remains committed overall to nuclear power, whose benefits include carbon-free,

reliable power that is cost-effective over the long term, contributes to supply diversity and

energy security as part of a balanced energy portfolio. It provides almost two-thirds of

Americas clean-air electricity.

Background Information

The FitzPatrick Nuclear Power Plant generates 838 megawatts of nearly carbon-free

electricity, enough to power more than 800,000 homes.

Additional information regarding todays announcement is available at

www.entergy.comandwww.FitzPatrickPower.com/Operational-Update .

Entergy Corporation is an integrated energy company engaged primarily in electric

power production and retail distribution operations. Entergy owns and operates power plants

with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000
http://www.entergy.com/http://www.entergy.com/http://www.fitzpatrickpower.com/Operational-Updatehttp://www.fitzpatrickpower.com/Operational-Updatehttp://www.fitzpatrickpower.com/Operational-Updatehttp://www.fitzpatrickpower.com/Operational-Updatehttp://www.entergy.com/


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megawatts of nuclear power, making it one of the nation's leading nuclear generators. Entergy

delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and

Texas. Entergy has annual revenues of more than $12 billion and approximately 13,000

employees.

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Entergy announcement - FitzPatrick Nuclear Power Plant