Providing clean, reliable, affordable power to customers is job number one for Entergy Mississippi, Inc. The company took another step toward ensuring that it continues to meet this obligation by announcing that it is formalizing its plans to buy the Hinds Energy Facility, a modern Mississippi power plant that will boost the utility’s generation capacity.
Located in Jackson, the plant is a 450-megawatt, combined-cycle natural gas turbine unit owned by KGen Power Corporation. Entergy Mississippi entered into a purchase agreement to buy the plant for $206 million, pending regulatory approval. That amount is much less than the cost to construct a comparable facility. The purchase also eliminates the risk of building a new plant and provides significant cost savings for customers.
"This is a sound investment in our commitment to meet the growing energy needs of our customers today and tomorrow," said Haley Fisackerly, president and CEO of Entergy Mississippi, Inc. "This progressive facility is highly efficient and uses natural gas, which is a clean-burning fuel that currently is in ample supply in the U.S."
The plant uses advanced technology known as combined cycle gas turbine. CCGT technology uses natural gas and its steam byproduct to produce maximum electricity at the lowest cost. It is also environmentally-friendly and furthers the company’s reputation as one of the cleanest utilities in the country.
"Acquiring this plant will let us continue updating our generation plants to more modern and efficient facilities and will allow us to retire old power plants," said Darron Case, manager of business and energy management for Entergy Mississippi, Inc. “It also helps us meet a growing demand at the most economic market price for our customers.”
Low cost power and an ample supply will also make the city and state more competitive in attracting new or expanded business and industry to the state. In addition, buying the plant will increase property tax revenues to approximately $5 million annually and will keep 20 jobs in the city. It also further expands Entergy Mississippi’s presence in and commitment to the capital city.
"We’re pleased and proud to be able to help Mississippi compete today and in the future for new jobs and investments," said Fisackerly. "And also that our investment in the communities we serve will create taxes the local government can use to reinvest in the area for the benefit of us all."
The planned acquisition of the plant was announced earlier this year in Entergy Corporation’s first-quarter earnings release and first-quarter 2011 Form 10-Q, filed with the Securities and Exchange Commission. Shareholders for KGen approved the sale in June, leading Entergy Mississippi to announce its plans to customers.
Entergy to purchase 450MW CCGT power plant in Mississippi for $206MM