FirstEnergy Corp. entered into a definitive agreement to sell the Fremont Energy Center in Ohio to American Municipal Power (AMP).
Under terms of the agreement, the facility would be purchased by AMP for $485 million, based on 685 MW of output. The transaction would close on or about July 1, 2011.
The Fremont Energy Center, a natural gas combined cycle generation plant owned by 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. FirstEnergy acquired the partially complete plant in January 2008 from Calpine Corp. during the company’s bankruptcy proceeding.
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.
Read more financial news