NRG to acquire cogeneration power plant in Texas

NRG Energy Inc. (NYSE: NRG) signed an agreement with a consortium of affiliates of Atlantic Power Corp., John Hancock Life Insurance Co. (U.S.) and Rockland Capital LLC to acquire the Gregory cogeneration power plant in Corpus Christi, Texas for $244 million. The deal is subject to customary closing conditions, including the Hart-Scott-Rodino pre-merger notification clearance and approval from the Public Utility Commission of Texas.

According to NRG, the cogeneration plant is equivalent to an approximately 560 MW combined cycle gas turbine plant with generation capacity of around 400 nominal MW and steam capacity of about 160 MW.

NRG President and CEO David Crane said acquiring a plant that is in effect “a six heat rate, fast start, gas-fueled plant at a significant discount to replacement cost” is an important to NRG’s Texas fleet.

Counting electrical and steam production, the cost of the plant equates to $436 per kilowatt. The plant provides steam, processed water and a small percentage of electricity to the Corpus Christi Sherwin Alumina plant. The majority of the baseload generation is available for sale in the Electric Reliability Council of Texas (ERCOT).

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