Entergy Corp. (ETR) said Tuesday it's revising its financing plans for a spin-off of five of its nuclear power plants and is asking New York regulators to speed up a decision on the deal, which it plans to close by the end of the year.

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. Merchant power companies Calpine Corp. (CPN) and NRG Energy Inc. (NRG) have sold high-yield bonds in recent months. Both have business models that are similar to Enexus, selling electricity at market prices rather regulated rates.

In New York, Entergy has faced resistance from public officials who are concerned Enexus will have too much debt and won't follow through on past agreements to invest in the plants. The nuclear plants in the spin-off include Indian Point and James Fitzpatrick nuclear plants in New York.

Entergy said in a press release Tuesday that it filed a motion with the New York Public Service Commission requesting a decision by the board's November meeting. It also plans to file an amended proposal by early next month with revisions to Enexus's financing plans.

The new proposal should address the concerns of regulators, while not damaging the benefits of the spin-off, wrote J.P. Morgan analyst Andrew Smith in a note to clients Tuesday.

Under the new plan, Entergy said Enexus will issue $3.5 billion in long-term bonds. Originally, the spin-off would result in Enexus issuing $4.5 billion, with the money going to Entergy to buyback shares and to pay off debt. Entergy spokesman Michael Burns said further details of the plan would be discussed during the company's earnings call next month.

Entergy also will increase the initial unrestricted cash balance of Enexus to $750 million from $250 million, while changing how it will distribute equity in the new company. Entergy will issue 80% of Enexus's equity to its shareholders and hold the remaining 20% in a trust. Entergy shareholders then will be able to exchange their Entergy shares for shares of Enexus, distributing the new company's remaining equity, Burns said.

Originally, Entergy had planned to distribute all of the equity in Enexus to Entergy shareholders up front. Changes to the financing plans came out of settlement negotiations that broke down earlier this year.

Besides New York, Entergy also is awaiting approval from Vermont regulators. Burns said the process continues in that state where Entergy's Vermont Yankee plant is located, and the company expects regulators to be pleased with the changes it will file.

Shares of Entergy, which have fallen nearly 38% over the past year, were recently up 1.1% at $74.54.

-By Mark Peters, Dow Jones Newswires; 212-416-2457; mark.peters@dowjones.com