TIme for Midwest news:
NRG Energy Inc. buys first power plants in mid-Atlantic region
Susan E. Peterson
Star Tribune
Tuesday, June 26, 2001
NRG Energy Inc., a Minneapolis-based power producer, said Monday that it has bought two power plants and stakes in two others in the mid-Atlantic region, giving
the company its first entry there.
NRG said it paid $630 million for the coal and oil-fired properties, which produce 1,081 megawatts of power in the Pennsylvania-New Jersey-Maryland area. The
purchase from Conectiv Inc. of Wilmington, Del., was part of a planned deal announced in January 2000, when NRG said it would pay $800 million for plants with
1,875 megawatts of generating capacity.
NRG said it expects to close on another 794 megawatts of capacity in the third quarter, pending approval from New Jersey regulators.
"We are pleased to have a strong presence in the [mid-Atlantic] market -- a vibrant, relatively mature and well-functioning market for electricity," said NRG CEO
David Peterson. "This acquisition gives us a strong base from which to expand into a top-three generator in this market."
Craig Mataczynski, president and CEO of NRG North America, said the acquisition fits well with NRG's substantial holdings in the New York-New England region.
The 1,081 megawatts acquired this month can supply power to more than 1 million average U.S. homes. The deal brings NRG's total generating capacity to 20,628
megawatts, an increase of about 7,000 megawatts from the same time last year. NRG also has said it will pay $350 million for two Connecticut plants owned by
Wisconsin Energy Corp. of Milwaukee; those plants produce 1,000 megawatts of power.
On Monday NRG's shares closed up 20 cents, at $21.95 per share.
-- Susan E. Peterson is at sepeterson@startribune.com .
© Copyright 2001 Star Tribune. All rights reserved. |
