Entergy Texas has filed a motion that would end its bid toward the purchase of one of the Union Power Station generating units near El Dorado, Arkansas, the company said on Friday.
If the motion is granted, it would green-light another bid by Entergy New Orleans to purchase the unit for $273 million.
The Union Power Station operates four natural gas-fired generation units with a capacity of 1,980 megawatts during summer months.
“Our customers in New Orleans would benefit from the clean, reliable and low-cost energy provided by this facility,” Charles Rice, president and CEO of Entergy New Orleans, said. “Entergy New Orleans has a need for additional generation, and this unit is an ideal way to meet this need at a price that is approximately half the cost of building a comparable new unit.”
In 2014, three subsidiaries entered into an asset-purchase agreement to acquire a portion of the power station. The station would be sold in its entirety for $948 million, or $237 million for each of its natural gas generators. A report said the plant cost is approximately half of what a new facility of its type would cost to construct.
“We remain committed to completing this transaction and delivering to our customers the benefits these four units offer,” Theo Bunting, Entergy New Orleans’ group president of utility operations, said. “The acquisition of these highly efficient units at a favorable price will help us to reliably meet the resource needs of our growing region and is a significant step in the ongoing modernization of our generating fleet.”
