NRG Energy to Acquire Corpus Christi, Texas Cogeneration Plant
Plant will expand NRG's growing cogeneration fleet as it provides NRG with additional cost-effective baseload power in one of the fastest growing states in the nation
PRINCETON, N.J. & HOUSTON--(BUSINESS WIRE)-- NRG Energy, Inc. (NYS: NRG) , has entered into an agreement with a consortium of affiliates of Atlantic Power Corporation, John Hancock Life Insurance Company (U.S.A.), and Rockland Capital, LLC to acquire the Gregory cogeneration plant in Corpus Christi, Texas. The cogeneration plant is equivalent to an approximately 560 megawatt (MW) Combined Cycle Gas Turbine plant with generation capacity of approximately 400 nominal MW and steam capacity of more than a million pounds per hour (160 MW of electricity equivalent). NRG is paying approximately $244 million for the plant. Counting both electrical generation and steam production, this cost equates to approximately $436 per kilowatt.
"The addition of what is, in effect, a six heat rate, fast start, gas-fueled plant at a significant discount to replacement cost is an invaluable addition to our Texas fleet, particularly at this time with market rules and supply conditions in Texas placing a premium on flexible operations," said David Crane, President and Chief Executive Officer of NRG.
The Gregory cogeneration plant provides steam, processed water and a small percentage of its electrical generation to the Corpus Christi Sherwin Alumina plant. The majority of the baseload generation is available for sale in ERCOT. This adds greater NRG capacity in ERCOT's south zone, where the company currently serves significant retail load and looks to continue to expand its customer base in this growing part of the state. The Gregory cogeneration unit came online in 2000.
"The Gregory plant's long-term steam contract and additional generation in a zone where NRG sees significant growth potential complements our wholesale and retail positions in the State exceptionally well," said John Ragan, president of NRG's Gulf Coast region. "Adding Gregory to NRG's existing portfolio of cogeneration and combined cycle plants also increases our ability to share expertise and best practices across Texas and the nation."
The transaction is subject to customary closing conditions including Hart Scott Rodino pre-merger notification clearance and approval from Public Utility Commission of Texas, as well as third party consents. The transaction is expected to close in the third quarter.
NRG is at the forefront of changing how people think about and use energy. We deliver cleaner and smarter energy choices for our customers, backed by the nation's largest independent power generation portfolio of fossil fuel, nuclear, solar and wind facilities. A Fortune 300 company, NRG is challenging the U.S. energy industry by becoming the largest developer of solar power, building the first privately-funded electric vehicle charging infrastructure, and providing customers with the most advanced smart energy solutions to better manage their energy use. In addition to 47,000 megawatts of generation capacity, enough to supply nearly 40 million homes, our retail electricity providers - Reliant, Green Mountain Energy and Energy Plus - serve more than two million customers. More information is available at www.nrgenergy.com. Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy.
NRG Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions and include NRG's expectations regarding the Gregory cogeneration plant and forward-looking statements typically can be identified by the use of words such as "will," "expect," "believe," and similar terms. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, hazards customary in the power industry, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the wholesale power markets, and changes in government regulation of markets and of environmental emissions,. NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause NRG's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the Securities and Exchange Commission at www.sec.gov.
Dave Knox, 713-537-2130
Dave Gaier, 609-524-4529
Chad Plotkin, 609-524-4526
Andy Davis, 609-524-4527
KEYWORDS: United States North America New Jersey Texas
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