Entergy to continue paying New York: Cuomo

(Reuters) - New York Attorney General Andrew Cuomo said Entergy Corp will pay a total $432 million to the state power authority as part of a multi-year contract even if Entergy completes the spin-off of its nuclear power stations.

New Orleans-based Entergy will no longer "renege" on its contract to pay the New York Power Authority over the length of the revenue-sharing agreement, which runs through 2014, Cuomo said in a statement on Monday.

NYPA also issued a statement saying Entergy will continue to pay the power authority despite its proposed reorganization, which is currently before the New York State Public Service Commission.

In April, Cuomo asked the state power regulator to block Entergy's plan to spin off five of its nuclear power stations, saying the new company would have too much debt and was not in the public interest.

In a regulatory filing this week Entergy, the second-largest U.S. nuclear power generator, said it plans to transfer $3 billion in debt to the new company.

With New York State already feeling the financial pinch, Entergy's decision to ditch its plan is a huge win for New Yorkers, Cuomo said in the statement.

"I'm pleased that in this period of economic belt tightening, my office's vigilance saved the State from being ripped off by Entergy," he said.

Entergy in November announced plans to transfer its Indian Point, FitzPatrick and three other nuclear stations to a new publicly traded company, hoping to capitalize on the facilities' low operating costs and zero carbon emissions.

The company was not immediately available for comment.

(Reporting by Sweta Singh in Bangalore; Editing by Quentin Bryar)