Entergy New Orleans requests court OK of $10 million property sale

By Jennifer Lanning Drey

Portland, Ore., Nov. 30 - Entergy New Orleans, Inc. requested court approval of the proposed $10 million sale of its Market Street Power Plant site to Market Street Properties, LLC, according to a Thursday filing with the U.S. Bankruptcy Court for the Eastern District of Louisiana.

Under the terms of the proposed sale, Market Street would pay Entergy New Orleans the full $10 million in cash at the closing of the sale. However, Market Street has said it will not proceed with the transaction if it does not close by Dec. 31, according to the filing.

The power plant has been commissioned since 1973 and is also the site of an active 115 kilovolt electrical substation, a 13 kilovolt electrical distribution facility and active transmission and distribution lines, which will be relocated at Market Street's expense.

Entergy New Orleans said in the motion that the sale would "substantially reduce its actual and contingent liabilities and contribute to its prospects for a successful organization."

A hearing has not yet been scheduled.

Entergy New Orleans provides electric and natural gas service to customers in New Orleans and is the smallest of Entergy Corp.'s five utility companies. Entergy New Orleans filed for Chapter 11 on Sept. 23, 2005. Its case number is 05-17697.

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