Entergy on Wednesday reported growth in earnings on both an as-reported and adjusted basis in the first quarter of 2019 as it further winds down its merchant nuclear power business.
As-reported earnings came in at $255 million, or $1.32 per share, up from $133 million, or $0.73 per share, in the same quarter of 2018.
For adjusted earnings, the numbers were $158 million, or $0.82 per share, versus $151 million, $0.83 per share, on a year-over-year basis.
Entergy Wholesale Commodities reported $97 million in earnings attributable to its parent, $0.50 per share on an as-reported basis. In the first quarter of 2018, the business lost $18 million, or $.10 per share.
“First quarter 2019 earnings reflected higher other income, primarily due to gains on decommissioning trust funds, as well as higher net revenue due to higher nuclear energy volume,” according to a press release on Entergy’s quarterly earnings. “These items were partially offset by a tax item related to the sale of Vermont Yankee in January 2019.”
Entergy Wholesale Commodities now owns the Pilgrim Nuclear Power Station in Massachusetts, Palisades Power Plant in Michigan, and Indian Point Energy Center in upstate New York. All the plants are scheduled to close by 2022, starting with Pilgrim by June 1 of this year.
The New Orleans-based power company has announced plans to sell all three sites to energy technology company Holtec International, which would assume both their decommissioning trust funds and all responsibility for decommissioning, site restoration, and spent fuel management. The U.S. Nuclear Regulatory Commission must approve transfer of the plants’ licenses from Entergy to Holtec.
Management hopes to close the Pilgrim sale by the close of 2019, Entergy Chairman and CEO Leo Denault said Wednesday in the company’s quarterly earnings call. That would be followed by the sale of Indian Point in the third quarter of 2021 and Palisades after its 2022 closure.
“The sales of these plants are important, not only do they secure our orderly exit from the merchant business, but they do so in a way that benefits stakeholders by accelerating the decommissioning timeline, drawing on industry leading decommissioning and segregation expertise and experience and laying the foundation for future business development opportunities in the region,” Denault said.
The commonwealth of Massachusetts and advocacy group Pilgrim Watch have both petitioned the NRC to intervene in the license transfer application filed in November for Pilgrim, a single-reactor plant on Cape Cod. Entergy and Holtec oppose the intervention petitions, which if approved would make Massachusetts and Pilgrim Watch parties to the regulatory review.
“I think we are quite confident we can work through that,” Entergy Chief Nuclear Officer Chris Bakken said during the conference call. “[T]ere isn’t any state approval required in Massachusetts it’s just the NRC that we’re seeking.”
Exelon Earnings
Separately, Exelon President and CEO Chris Crane said during the company’s first-quarter earnings call Thursday that it was not clear whether legislation in Pennsylvania could save reactor Unit 1 at the Three Mile Island nuclear plant.
The Chicago-based power company plans to close the reactor in September. However, the Pennsylvania General Assembly is considering legislation that would require state utilities to increase their purchases of power from non-carbon-emitting sources – specifically nuclear power. That is in line with measures approved in Illinois, New Jersey, and New York state that provide financial support to other Exelon facilities.
“Several hearings have been held in the House and Senate on the bill, but it’s not clear the action will be taken in time to reverse our decision to retire TMI,” Crane told financial analysts.
Exelon reported $0.93 per share in generally accepted accounting principles (GAAP) net income for the quarter, up from $0.60 in the same quarter of 2018. Non-GAAAp operating earnings fell from $0.96 to $0.87 per share on a year-over-year basis.
