Entergy Gulf States La. to buy power stations

Union Power Station PEPWR

BATON ROUGE, La. (AP) - Entergy companies have agreed to buy Union Power Station for about $948 million. Union is located near El Dorado, Arkansas, near the Louisiana border.

Entergy Gulf States Louisiana LLC
says in a news release Tuesday that the move will help meet the energy needs of Louisiana residents while keeping down costs.

"Louisiana is the epicenter of an industrial renaissance that will bring scores of new jobs and drive demand for electricity in our state by as much as 1,600 megawatts by the year 2019," said Phillip May, president and chief executive officer for Entergy's Louisiana utilities. "The acquisition of these highly efficient units will help us meet some of that increased load while keeping ratepayers' costs among the lowest in the country."

Union's natural gas generators can put out up to 1,980 megawatts. It entered commercial service in 2003.

Entergy Texas Inc. and Entergy Arkansas Inc. have each agreed to buy one unit and Entergy Gulf States Louisiana is buying the other two.

Entergy said the purchase price is about half the cost of building a comparable new plant.

Entergy Louisiana, LLC and Entergy Gulf States Louisiana, LLC. provide electric service to more than one million Louisiana customers. Additionally, Entergy Gulf States Louisiana provides natural gas service to nearly 93,000 customers in the greater Baton Rouge area. With operations in southern, central and northeastern Louisiana, the companies are subsidiaries of Entergy Corporation.

Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $11 billion and approximately 14,000 employees.

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