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Iowa nuclear reactor could close before operating license expires: NextEra CFO

Washington (Platts)--26 Jan 2018 622 pm EST/2322 GMT


NextEra Energy Resources' 647-MW Duane Arnold in Palo, Iowa, could close well before its operating license expires in 2034, an executive with parent company NextEra Energy said during its fourth-quarter 2017 earnings call Friday.

John Ketchum, CFO and executive vice president, finance, said that late last year the company concluded that it is unlikely the nuclear reactor's primary customer will extend a current contract after it expires in 2025. Ketchum did not name the primary customer.

"Without a contract extension, we will likely close the facility at the end of 2025, despite being licensed to operate until 2034," Ketchum said, according to a transcript of the call posted by financial news website Seeking Alpha.

Ketchum said the unit's book value and asset retirement obligation were reviewed and a $258 million after-tax impairment was recorded. Ketchum also said the company would continue to seek a contract extension that would enable the reactor to continuing operating.

-- Michael McAuliffe, newsdesk@platts.com
-- Edited by Valarie Jackson, newsdesk@spglobal.com

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