Entergy 2009 Annual Report Download - page 140

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Entergy Corporation and Subsidiaries
Notes to Financial Statements
136
NOTE 15. ACQUISITIONS AND DISPOSITIONS
Calcasieu
In March 2008, Entergy Gulf States Louisiana purchased the Calcasieu Generating Facility, a 322 MW
simple-cycle gas-fired power plant located near the city of Sulphur in southwestern Louisiana, for approximately
$56 million from a subsidiary of Dynegy, Inc. Entergy Gulf States Louisiana received the plant, materials and
supplies, SO2 emission allowances, and related real estate in the transaction. The FERC and the LPSC approved the
acquisition.
Ouachita
In September 2008, Entergy Arkansas purchased the Ouachita Plant, a 789 MW three-train gas-fired
combined cycle generating turbine (CCGT) electric power plant located 20 miles south of the Arkansas state line
near Sterlington, Louisiana, for approximately $210 million from a subsidiary of Cogentrix Energy, Inc. Entergy
Arkansas received the plant, materials and supplies, and related real estate in the transaction. The FERC and the
APSC approved the acquisition. The APSC also approved the recovery of the acquisition and ownership costs
through a rate rider and the planned sale of one-third of the capacity and energy to Entergy Gulf States Louisiana.
The LPSC also approved the purchase of one-third of the capacity and energy by Entergy Gulf States
Louisiana, subject to certain conditions, including a study to determine the costs and benefits of Entergy Gulf States
Louisiana exercising an option to purchase one-third of the plant (Unit 3) from Entergy Arkansas. In April 2009,
Entergy Gulf States Louisiana made a filing with the LPSC seeking approval of Entergy Gulf States Louisiana
exercising its option to convert its purchased power agreement into the ownership interest in Unit 3 and a one-third
interest in the Ouachita common facilities. In September 2009 the LPSC, pursuant to an uncontested settlement,
approved the acquisition and a cost recovery mechanism. Entergy Gulf States Louisiana purchased Unit 3 and a one-
third interest in the Ouachita common facilities for $75 million in November 2009.
Palisades
In April 2007, Entergy's Non-Utility Nuclear business purchased the 798 MW Palisades nuclear energy
plant located near South Haven, Michigan from Consumers Energy Company for a net cash payment of $336
million. Entergy received the plant, nuclear fuel, inventories, and other assets. The liability to decommission the
plant, as well as related decommissioning trust funds, was also transferred to Entergy's Non-Utility Nuclear business.
Entergy's Non-Utility Nuclear business executed a unit-contingent, 15-year purchased power agreement (PPA) with
Consumers Energy for 100% of the plant's output, excluding any future uprates. Prices under the PPA range from
$43.50/MWh in 2007 to $61.50/MWh in 2022, and the average price under the PPA is $51/MWh. In the first
quarter 2007, the NRC renewed Palisades' operating license until 2031. As part of the transaction, Entergy's Non-
Utility Nuclear business assumed responsibility for spent fuel at the decommissioned Big Rock Point nuclear plant,
which is located near Charlevoix, Michigan. Palisades' financial results since April 2007 are included in Entergy's
Non-Utility Nuclear business segment. The following table summarizes the assets acquired and liabilities assumed at
the date of acquisition.
138