NEW YORK, NY -- Attorney General Andrew M. Cuomo announced today that action by his office has forced Entergy to back off from reneging on a contract with the New York Power Authority (NYPA) that would have cost New York State an estimated $432 million over six years. Entergy Nuclear, which owns the two Indian Point plants in Westchester County and the Fitzpatrick plant in Oswego County, is currently planning a spin-off of its plants. In April 2008, the Attorney General’s Office discovered that the company’s plan would effectively end the $432 million agreement it has with the state. Cuomo’s office in April submitted comments to the Public Service Commission, who has to approve the deal, objecting to the spin-off, claiming it would cost the state hundreds of millions of dollars.
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Today, Cuomo’s office was informed by NYPA that Entergy would no longer renege on its $432 million contract with the state.
"With New York State already feeling the financial pinch, Entergy's decision to ditch its ill-conceived plan is a huge win for New Yorkers," said Attorney General Andrew Cuomo. “As part of its questionable decision to restructure, Entergy threatened to renege on a $432 million commitment to the state, and I’m pleased that in this period of economic belt tightening, my office’s vigilance saved the State from being ripped off by Entergy."
In comments filed with the New York State Public Service Commission in April 2008, the Attorney General was the first to identify and publicly criticize Entergy’s proposal to renege on its contract with NYPA and its harmful economic consequences for New Yorkers. The Attorney Generals action was part of his review of a proposal by Entergy, the owner of the Indian Power nuclear power plants, to restructure its corporate entity, spinning off ownership of the Indian point plants and others to a new corporation that would lack Entergy’s financial resources. Buried in the fine print of Entergy’s proposal was its intent to renege on its existing $72 million per year contract with NYPA when the new deal was finalized.
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