The Federal Energy Regulatory Commission on Feb. 17 approved a Dec. 23 application from Entergy Services, on behalf of its affiliate Entergy Louisiana LLC, for approval for Entergy Louisiana to acquire from The Bank of New York Mellon Trust Co. N.A. the 10.5% ownership interests in Unit 3 of the Waterford Steam Electric Station that Entergy Louisiana does not already own.
Entergy Louisiana owns approximately 89.5% of Waterford 3, a nuclear facility located in Kilona, Louisiana, and leases the remaining approximately 10.5% from Mellon. Entergy Louisiana states that it controls the Waterford 3 in its entirety through its ownership and leasehold interests.
Entergy Louisiana said that each of three leases provides it with an option to purchase Mellon’s undivided interest in Waterford 3 at fair market sales value upon the expiration of the basis lease term in July 2017. Entergy Louisiana states that, in July 2015, a formal appraisal procedure set forth in the leases to determine fair market sales values was completed. The appraisal procedure resulted in a determination of fair market sales value in excess of $10 million. The parties have agreed that the purchase will occur prior to July 2017.
Entergy Louisiana states that the purchase price is approximately $112 million, of which $60 million will be paid in cash at the time of the acquisition of the rights and the remaining amount of approximately $52 million is payable in three installments.