Entergy Girds for Grid Growth Across U.S. South

Researched by Industrial Info Resources (Sugar Land, Texas)--The brutal heat sweeping much of the U.S. has fired up profits at Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana). As the company backs away from its nuclear and coal-fired business, it is strengthening its presence on the Texas and Louisiana power grids, where demand is driven by growth in the energy industry. Industrial Info is tracking more than $10 billion worth of active projects from Entergy, more than half of which is attributed to unit closures at nuclear and coal-fired generation facilities.

Entergy reported earnings of $160 million for the second quarter, compared with a loss of $6 million in the same period last year. Entergy's utility segment saw its second-quarter earnings drop to $153 million from $326 million in the same period last year, largely due to a $551 million pre-tax regulatory charge related to a settlement between the Michigan Public Service Commission and System Energy Resources Incorporated, a subsidiary of Entergy. Nonetheless, the segment reported exceptionally strong retail sales as record-breaking temperatures swept across the U.S. South, where Entergy is expanding its transmission and distribution (T&D) capacity.

Click on the image at right for a heat map of Entergy's active T&D and substation projects, from Industrial Info's Geolocator tool.

Much of Entergy's T&D buildout can be found in the coastal regions of Texas and Louisiana. In addition to soaring temperatures, these areas are expected to need a stronger power grid for a slew of export-related energy projects, including facilities for the production and distribution of liquefied natural gas (LNG), that are set to be brought online in the coming years. Entergy is seeking permits for a 30-mile transmission line from Deweyville to Orange, Texas, both of which sit on the border with Louisiana. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read more in a detailed project report.

The company also is planning a series of substation developments in and around the Houston Ship Channel, including the Colony Substation near Dayton, which began site preparation in the spring; subscribers can learn more from Industrial Info's project report. Entergy is seeking permits for several other substation projects in the area, including the:

• Millbend Substation in New Caney; see project report
• Tuscany Substation in Crosby; see project report
• Southline Substation near Cleveland; see project report

Louisiana, which accounted for more than half of Entergy's 2021 electric retail sales, is home to several T&D projects, including two proposed lines: a 30-mile line from Killona to Saint James, and a 29-mile, two-part line from Lockport to Golden Meadow. Both are intended to support future load growth and ensure grid stability for southern Louisiana. Subscribers can learn more from Industrial Info's detailed reports on the Killona line and the shorter and longer stretches of the Lockport line.

Entergy's Wholesale Commodities segment, which manages its nuclear assets, reported an $87 million profit for the second quarter, due in part to a $166 million gain on the sale of the Palisades Nuclear Power Station in Covert, Michigan. The company's second-quarter 2021 results saw a $275 million loss, fueled by a $340 million loss on the sale of the Indian Point Energy Center in Buchanan, New York. The absence of these two facilities on Entergy's books also meant lower operational, maintenance and depreciation expenses in second-quarter 2022, only partly offset by a lack of revenues from the shuttered plants.

The Palisades plant was closed in May, as Entergy was unswayed by billions in dollars offered by the U.S. Department of Energy (DOE) to the nation's financially ailing nuclear power sector. Subscribers can learn more from Industrial Info's April 29, 2022, article - Entergy Still Plans to Ditch Nuclear Plant Despite Federal Bailout Hope, and read detailed project reports on the decommissioning and dismantlement of Palisades, Indian Point Unit 2 and Indian Point Unit 3.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for active projects from Entergy.

Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.