Entergy Rises After Saying New York Revamp May Boost SalesJulie Johnsson
Entergy Corp., which operates the nuclear plant closest to New York City, rose after telling investors that a proposed restructuring of New York’s electricity market may boost power sales.
Entergy, based in New Orleans, increased 2.2 percent to $69.61 at the close in New York. The shares have climbed 9.2 percent this year.
Entergy said in slides posted on its website today that a new Lower Hudson Valley zone that is being created by New York’s grid operator is on schedule to hold its first capacity auction in April 2014, providing new revenue to power generators serving the region. So-called capacity payments, which are in addition to the price of electricity, are paid by utility customers to generators to assure a sufficient supply of power.
The new zone must still be approved by federal regulators. A simulated auction conducted by the New York Independent System Operator yielded capacity prices that are about double those paid in northern New York, according to the Entergy slides.