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 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.