NRG Energy to buy 560 MW Texas cogeneration power plant

The cogeneration plant is equivalent to a nearly 560 MW combined cycle gas turbine plant with generation capacity of about 400 nominal MW

NRG Energy Inc. agreed with a consortium of affiliates of Atlantic Power Corp., John Hancock Life Insurance Co., and Rockland Capital, to buy the Gregory cogeneration plant in Corpus Christi, Texas.

The cogeneration plant is equivalent to a nearly 560 MW combined cycle gas turbine plant with generation capacity of about 400 nominal MW and steam capacity of more than a million pounds per hour (160 MW of electricity equivalent).

NRG is paying about $244 million for the power plant. Counting both electrical generation and steam production, this cost equates to about $436 per kilowatt.

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 the Electric Reliability Council of Texas (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 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.

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