Entergy Seeks Help for Wholesale Electric Trading Unit
New Orleans-based Entergy confirmed earlier this month that it
has been involved in talks regarding a possible joint venture
between its wholesale electricity trading unit, Entergy Wholesale
Operations (EWO), and another undisclosed company. Entergy said it
hopes to make an announcement within five weeks. No other details
about a possible deal were given.
"This is something that has been going on for a while. But the
reports are true. We are looking to help hedge our price risk in
the wholesale electric trading business by creating a joint
venture," said Carol Clawson, an Entergy spokeswoman.
Based in Houston, EWO employs more than 100 people. It has been
operating for more than three years. In 1999, the unit lost
$500,000 in income. Yet, despite its poor financial results, the
unit still finished in the top 10 of the power marketer rankings by
selling 106.8 million MWh in 1999. That total marks an 8.8 million
MWh increase over 1998's numbers.
Entergy owns, manages, or invests in power plants generating
nearly 30,000 megawatts of electricity domestically and
internationally and delivers electricity to about 2.5 million
customers in portions of Arkansas, Louisiana, Mississippi and
If the joint venture occurs, it will not be the first major
change for Entergy's wholesale team this year. Last January, EWO
was created when Entergy Power Marketing (EPMC) and Entergy Power
Group (EPG) merged into a single entity. The unit was to be a major
part of the company's five-year growth strategy announced last
December when the company unveiled a five-year $9.8 billion capital
investment plan. Of that total capital amount, Entergy had planned
to spend $3.9 billion to grow its wholesale operations.
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