NRG Discloses Price For Pennsylvania, Illinois Power Plant Sales

NRG Energy formally announced the previously reported agreements to sell its 525 MW Seward power plant in New Florence, Pennsylvania and its 352 MW Shelby County power plant in Neoga, Illinois, and disclosed the aggregate purchase price for the sales

The sale of the Seward plant had been first reported by EnergyChoiceMatters.com on Monday

The aggregate purchase price for the two generation facilities, both of which are owned by GenOn Energy Inc, an excluded project subsidiary of NRG, is approximately $138 million comprised of cash and other consideration. Together, these assets were projected to average $10.5 million of Adjusted EBITDA annually over the next 3 years and require approximately $17 million in maintenance capital expenditures over the same period.

The Seward facility, which is located in the PJM Interconnection, is being acquired by Seward Generation, LLC, a Robindale Energy Services, Inc. company. As part of the sale agreement, NRG Energy Services will provide operations and maintenance services to the Seward plant on behalf of Robindale Energy using the current NRG workforce.

The Shelby County facility, which is located in the MISO Interconnection, is being acquired by an affiliate of Rockland Capital, LLC.

"NRG is focused on maintaining a robust presence and balance through conventional generation assets that complement each other in respect to geography, technology and smart fuel diversity, " said David Crane, CEO of NRG. "By streamlining our fleet, we can create additional value for our shareholders and meet the needs of our customers with reliable, efficient and economic power. This is part of our ongoing and deliberate strategy of portfolio optimization."

The transactions are expected to close in the first quarter of 2016, subject to regulatory approvals, including the Federal Energy Regulatory Commission.