NY Law Judges: Ruling On Entergy Spin-Off Possible In January

New York regulators will decide in January or later on Entergy Corp.'s (ETR) plans to spin off five of its nuclear power plants, falling short of the company's schedule.

Two state administrative law judges in a ruling released late Friday wrote that a request by Entergy for a November decision is not feasible. A decision in January is possible, but could be delayed, the judges wrote.

The New Orleans-based power company has been looking to create the nation's first stand-alone nuclear power company for more than a year and a half. The deal was stymied by the global credit freeze as Entergy needs to access billions in new debt to create the company, to be called Enexus Energy Corp. A return of activity in the market for below-investment-grade debt has Entergy again focusing on the regulatory approvals needed for the spin-off, releasing a new financing plan for it last month.

The judges wrote that Entergy requested a November decision from the New York Public Service Commission so that the spin-off could be completed by the end of the year. The administrative law judges will eventually make a recommendation to the commission on the spin-off, with the commission having final authority.

The ruling states Entergy suggested an alternative schedule of a ruling in mid-December with the transaction closing at the end of January.

Entergy shares recently traded down 13 cents to $81.65.

-By Mark Peters, Dow Jones Newswires; 212-416-2457; [e-mail]