ETR Entergy Corp

By Ezequiel Minaya 

Entergy Corp. said Monday it has agreed to shut down New York's Indian Point nuclear plant after striking a deal with state authorities, who have long targeted the facility out of concerns for its environmental impacts and proximity to New York City.

The company said it would shutter one of two nuclear reactors at the plant by 2020, with the second following in 2021. In exchange for closing the plant, located about 30 miles from New York City in Northern Westchester County, state authorities have agreed to drop legal challenges against the New Orleans-based company that have blocked its license renewal from the federal Nuclear Regulatory Commission since 2007.

Riverkeeper, an environmental nonprofit group which also filed claims against the company, will also clear the company's path to license renewal.

The company has also agreed to supplemental safety inspections from the state in addition to those conducted by NRC officials.

Entergy said it was closing the facility because of low energy prices that have dented revenue, as well as increased operating costs.

The company cited competition from natural gas as a key factor in the closure of Indian Point on Monday, disclosing that it will recognize a $2.4 billion pretax impairment charge in connection with the closure of the plant's remaining units.

The plant has long been targeted by Gov. Andrew Cuomo and environmental activists who have accused the facility of damaging the environment and aquatic wildlife along the Hudson River.

Entergy has said in the past that it has made necessary investments and upgrades to ensure safe operations at the site.

New York's Department of State has said the Indian Point plant is in violation of state coastal management regulations and that it poses a risk to the 17 million people who live within 50 miles of it.

The plant generates about 2,000 megawatts of electricity for New York City and Westchester County. Indian Point Unit 2 began commercial operation in 1974 and Unit 3 in 1976.

The office of the governor says the state is prepared to substitute the power provided by the plant.

"The state has more than 2,800 megawatts of replacement power that is fully permitted and ready to be in service before Indian Point closes," said James Allen, communications director for the governor.

--Russell Gold and Cassandra Sweet contributed to this article.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

(END) Dow Jones Newswires

January 09, 2017 20:59 ET (01:59 GMT)

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