Entergy to acquire NextEra's Rhode Island State Energy Center, a 550-MW natural gas-fired power plant located in Johnston, for about US$346M
October 24, 2011
– Company Signs Definitive Agreement with NextEra for Purchase of Natural Gas-Fired Power Plant
Entergy Corporation (NYSE: ETR) announced today that it has reached an agreement with a subsidiary of NextEra Energy Resources, LLC to acquire the Rhode Island State Energy Center (RISEC), a 550-megawatt power plant located in Johnston, Rhode Island, for approximately $346 million, subject to closing adjustments.
“The acquisition presents an opportunity to create value by acquiring modern, efficient generation at approximately half the new build cost and is in line with our disciplined, market point of view for capital deployment,” said Richard Smith, president of Entergy Wholesale Commodities. “This asset enhances the value of our existing portfolio through the addition of generation in the New England market that is well positioned to benefit from expected market recovery.”
The facility is a nominal 550-megawatt Siemens natural gas-fired combined-cycle generating plant that entered commercial service in 2002. RISEC is currently working with Siemens to facilitate the uprate of its combustion turbines, which is scheduled for completion in November 2011 and will increase the facility’s nominal capacity to 583 megawatts. The transaction is contingent upon, among other things, obtaining necessary regulatory approval from the Federal Energy Regulatory Commission and notification of the transaction pursuant to the Hart-Scott-Rodino antitrust law. Closing is expected to occur in late 2011.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $11 billion and approximately 15,000 employees.