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Modernizing the electric grid and building the utility of the future
Written By: Jen Neville
August 22, 2018
Entergy Mississippi, Inc. has taken another step toward modernizing the electric grid and building the utility of the future. The company intends to purchase the Choctaw Energy Facility, a modern power plant in French Camp, Mississippi, subject to regulatory approval.
The plant is a clean and modern 810-megawatt, combined-cycle natural gas turbine unit owned by a subsidiary of GenOn Energy, Inc. Entergy Mississippi entered into a purchase agreement yesterday to buy the plant for $314 million, subject to certain adjustments. That amount is significantly less than the cost to build a comparable facility and eliminates construction time and risks associated with building a new plant, providing more immediate benefits and savings for customers. The transaction is expected to close by the end of 2019, subject to receipt of required regulatory approvals and satisfaction of customary conditions to closing.
Haley Fisackerly, Entergy Mississippi president and CEO commented,
This is a sound investment in our commitment to meet the energy needs of our customers today and in the future. This plant modernization will create immediate benefits that include greater reliability, lower emissions and cost savings for our customers.
The plant uses advanced technology known as a combined-cycle gas turbine. CCGT technology uses natural gas and its steam byproduct to produce maximum electricity at the lowest cost. It is also environmentally-friendly and furthers Entergy's reputation as one of the cleanest utilities in the country.
"This purchase is a continuation of our efforts to update our generation plants to more modern and efficient facilities, and it replaces power plants that have been recently retired or will soon be retired," added Darron Case, Entergy Mississippi director of resource planning and market operations. "We have retired approximately 700 megawatts of original, older generation in the past several months. This newer plant also helps us meet a growing need at the most economic market price for our customers. The purchase will also provide the opportunity for the retirement of additional older plants in the near-term."
"It's important to us to be able to help Mississippi compete today and in the future for new jobs and investments," stated Fisackerly. "We're also proud that our acquisition of this plant will allow for its continued operations and delivery of economic benefits to the area through local taxes and jobs."
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers and has annual revenues of approximately $11 billion.