By Editors of Power Engineering
FirstEnergy Corp. has agreed to sell four natural gas generating plants in Pennsylvania and its competitive portion of a Virginia hydroelectric power station to a subsidiary of LS Power Equity Partners III LP of New York for $925 million.
The facilities, which have a total capacity of 1,572 MW, include:
· Bath County Hydro, 713 MW in Warm Springs, Virginia
· Springdale Generating Facility Units 1-5, 638 MW in Springdale Township, Pennsylvania
· Chambersburg Generating Facility Units 12-13, 88 MW in Guildford Township, Pennsylvania
· Gans Generating Facility Units 8-9, 88 MW in Springhill Township, Pennsylvania
· Hunlock Creek, 45 MW in Hunlock Creek, Pennsylvania
FirstEnergy indicated the sale of these plants is part of the company’s strategy of operating as a fully-regulated utility company. FirstEnergy had announced it was moving away from competitive generation in November, and was exploring to move its assets to more regulated structures, selling assets or deactivating assets. Up to 13 power plants were targeted for sale or closure.
The sale will close in the third quarter of 2017, and leave FirstEnergy with 15,380 MW of facilities including nuclear, coal, hydro, wind and solar across Ohio, Pennsylvania, West Virginia, Virginia, New Jersey and Illinois.
LS Power is a developer, owner, operator and investor in power generation and electric transmission infrastructure.