Entergy Corp. (NYSE:ETR) will close its Vermont Yankee power plant as a result of low natural-gas prices, low profitability associated with running a single-reactor plant, and wholesale market “flaws,” which lead to artificially low energy prices, according to the company’s Tuesday press release.
Entergy joins a growing list of failed nuclear plants in the United States this year, including Dominion Resources’ Kewaunee, Duke Energy’s Florida plant and Edison International’s San Onofre.
The announcement arrives just weeks after Entergy’s July Q2 report, which showed earnings down 55% and a plan to cut 800 jobs.
The company expects charges of “$55 million to $60 million associated with future severance and employee retention costs” through the end of 2014, but plans to save $200 million to $250 million by 2016 as a result of its recent “overhaul,” according to the Wall Street Journal.
Entergy says it remains committed to nuclear energy as an important part of its future
Read the company’s press report in full here.