FirstEnergy agrees on sale of Fremont Energy Center

Akron, Ohio, March 14, 2011 FirstEnergy Corp. entered into a definitive agreement to sell the Fremont Energy Center in Fremont, Ohio, to American Municipal Power.

Under terms of the agreement, AMP would purchase the facility for about $485 million, based on 685 MW of output. The transaction would close on or about July 1, 2011. The companies signed a memorandum of understanding for the transaction in February 2011.

The Fremont Energy Center, a natural gas combined cycle generation plant owned by FirstEnergy unit, FirstEnergy Generation Corp., is currently under construction and scheduled to be complete in 2011.

The plant includes two natural gas turbines and a steam turbine capable of producing 544 MW of load-following capacity and 163 MW of peaking capacity.

The purchase price would be incrementally increased, not to exceed $16 million, to reflect additional output and transmission export capacity up to its nameplate capacity of 707 MW.

In addition, AMP would reimburse FirstEnergy for construction costs incurred between February 1, 2011, and the closing date, if the transaction is completed. These costs would not exceed $25.3 million.

FirstEnergy acquired the partially complete plant in January 2008 from Calpine Corp. in that company's bankruptcy proceeding. The sale of Fremont to AMP is consistent with FirstEnergy's current efforts to divest non-strategic assets and use the proceeds to provide the company with additional financial strength and flexibility.

FirstEnergy is a diversified energy company dedicated to safety, reliability and operational excellence. Its ten electric distribution companies comprise the nation's largest investor-owned electric system.

Its generating fleet features non-emitting nuclear, scrubbed baseload coal, natural gas, and pumped-storage hydro and other renewables, and has a total generating capacity of about 24,000 MW.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs