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Entergy Arkansas Purchases Hot Spring Energy Facility

Company Upgrades Fleet and Returns to its Roots

MALVERN, Ark., Nov. 30, 2012 /PRNewswire/ -- Entergy Arkansas, Inc. has completed the purchase of the Hot Spring Energy Facility, putting down new roots within sight of where the company began nearly 100 years ago. The modern Arkansas power plant that will boost the utility's generation capacity sits less than a mile from where Arkansas Power and Light founder Harvey Couch ran the first transmission line between Malvern and Arkadelphia in 1913.


"This land and this community are where the vision to promote the economic development of Arkansas began," said Hugh McDonald, president and chief executive officer of Entergy Arkansas, Inc. "We are so pleased to have the opportunity to invest in this community with a reliable, low-cost energy resource to serve the future power demand in Arkansas, and offer savings for all Entergy Arkansas customers." 

Entergy Arkansas announced plans to acquire the plant in 2011 and assumed ownership November 30.

The 620-megawatt, combined-cycle natural gas turbine unit was purchased from KGen Hot Spring LLC for approximately $253 million, a sizeable discount to the cost to construct a comparable facility.

The plant purchase supports the company's strategy of providing reliable electric service at the lowest reasonable cost. Low cost power and an ample supply will also make the state more competitive in attracting new or expanded business and industry.

"The Hot Spring Plant is an environmentally friendly resource, and its addition is another important step in preparing Entergy Arkansas for the future by providing low cost, reliable and clean generation to Arkansas," McDonald said.

Entergy Arkansas provides electricity to approximately 700,000 customers in 63 counties. Entergy Arkansas is a subsidiary of Entergy Corporation, which is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy Corporation's utilities own and operate power plants with approximately 30,000 megawatts of electric generating capacity, including more than 10,000 megawatts of nuclear power, making it one of the nation's leading nuclear generators. The Entergy utilities deliver electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy Corporation has annual revenues of more than $11 billion and approximately 15,000 employees.

Twitter: @EntergyARK

SOURCE Entergy Arkansas, Inc.

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