REUTERS - Entergy Corp, the second-largest US nuclear power generator, said on Monday it would spin off five nuclear plants into a new company in a bid to capitalize on the greenhouse-gas-friendly technology.The new company, which would be 50 percent owned by Entergy, would have nearly 5,000 megawatts of generating capacity, located largely in the US Northeast, which has some of the highest power prices in the country.
After the spin-off planned for the third quarter of 2008, Entergy would consist of five electric utility subsidiaries across four states and the stake in the new unit.The US nuclear industry is seeing a resurgence in interest, driven largely by expectations that the federal government will create new rules limiting carbon dioxide emissions that are blamed for global warming.
Entergy said the new company would target earnings before interest, taxes, depreciation and amortization of US$2 billion by 2012 based on an average power price of about US$95 per megawatt hour. That would leave the business US$500 million to US$1 billion annually for acquisitions or share repurchases.
Entergy .... Net income was US$461.2 million, or US$2.30 per share, up from US$388.9 million, or US$1.83 per share, a year earlier.
The earnings-per-share gain of nearly 26 percent lagged the 27 percent the company forecast on Oct. 17.
NOW THAT IS SOME
GREEN :-(