Upcoming AWS Coverage on Great Plains Energy Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 9, 2016 / Active Wall St. blog coverage looks at the headline from Entergy Corp. (NYSE: ETR) and CMS Energy Corp. (NYSE: CMS). CMS Energy reported on December 08, 2016, that its subsidiary Consumers Energy, has reached an agreement with Entergy Corp. for early termination of their contract where the former purchased power from the Palisades nuclear plant. Entergy, headquartered in New Orleans, had the license to operate the plant through 2031, but will reportedly close it in October of 2018. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

One of Entergy's competitors within the Electric Utilities space, Great Plains Energy Inc. (NYSE: GXP), released on November 03, 2016, its results for third quarter 2016. AWS will be initiating a research report on Great Plains Energy in the coming days.

Today, AWS is promoting its blog coverage on ETR; touching on GXP. Get all of our free blog coverage and more by clicking on the links below:

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The clean energy initiative

The termination of the contract, as seen by many, is a drive by Consumers Energy to reduce costs, deliver clean energy, offer reliable customer demand-reduction technologies and bring additional investments to fulfill the purpose. The regulatory approvals for the agreement are set to cut consumer costs by an additional $172 million.

Consumers Energy had signed an agreement on April 11, 2007, where it had disclosed the purchase of 100 percent output from Entergy's 798-megawatt Palisades Nuclear Plant, in Michigan for $380 million.

According to Consumers Energy, several factors have led to the termination of the contract. Primarily, less expensive alternatives to provide power in the region are available now.

"We determined that a shutdown in 2018 is prudent when comparing the transaction to the business risks of continued operation," stated Entergy's Chief Executive, Leo Denault, in a statement made on December 08, 2016.

The nuclear power hassle

Entergy's nuclear power plants have reportedly transformed into liabilities rather than being profitable assets for the firm. Entergy has planned since then to shed its uneconomic merchant nuclear plants and focus on several other clean energy initiatives.

On August 27, 2013, Entergy had announced plans to close and decommission the Vermont Yankee nuclear plant in Vernon. The firm had cited financial reasons for the closure before the next refueling which had been scheduled for 2014. This decommissioning was closely followed by the announced closure of Pilgrim Nuclear Power Station on October 13, 2015. Entergy acquired the plant in 1998 for $80 million. The Palisades nuclear plant was eventually the next in-line and with the termination of contract from Consumers Energy, the plant is set to face closure on October 01, 2018.

The troubled nuclear energy initiative: Palisades

The Palisades nuclear plant had its own set of problems even before it was operational. It had faced construction and installation delays, pushing it a year behind schedule to be up and running back in 1971. Thirteen months later, the steam generator had shown leakage of radioactive water. By 2006, Consumers Energy was overlooking a sell-out of the problematic plant. Now, Entergy plans to decommission it by 2018.

The fate of more than 600 employees working on the plant is dependent upon the two entities as of now. Consumers Energy will reportedly employ 180 skilled workers from Palisades into its statewide energy infrastructure. Additionally, it will contribute $2 million to facilitate rehabilitation and support economic development. Entergy will offer an additional $8 million to facilitate community transition initiatives.

Stock Performance

Entergy's stock is trading marginally down by 0.04%, closing Thursday's session at $70.41 on volume of 1.67 million shares. The company's shares gained 7.86% since the beginning of the year. Additionally, the stock has advanced 8.36% in the last twelve months. The company's shares are trading at a PE ratio of 9.83 and have a dividend yield of 4.94%.

CMS's stock was up marginally by 0.10% from the previous closing price of $40.57, finishing the day at $40.61 for the day. A total of 1.61 million shares were exchanged at the end of the trading session. The stock has a P/E ratio of 19.50 and the dividend yield is at 3.05%.

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SOURCE: Active Wall Street