NRG Energy Inc. has announced plans to buy Edison Mission Energy (EME), parent of Illinois coal plant owner Midwest Generation, for US$ 2.6 billion.
NRG is making the purchase with a combination of cash, newly issued debt and stock, with 12.7 million shares of NRG stock accounting for approximately US$ 350 million of the purchase price.
Edison Mission Energy’s generation portfolio consists of nearly 8000 net MW of generation capacity located throughout the US:
- 1,700 MW of wind capacity
- 1,600 MW of gas-fired capacity
- 4,300 MW of coal-fired capacity
- 400 MW of oil and waste coal-fired capacity
Four Illinois coal plants, Powerton (Pekin), Joliet, Waukegan and Will County (Romeoville) would transfer to NRG by the first quarter of 2014 if the bankruptcy court approves. Edison Mission filed for Chapter 11 bankruptcy in December 2012.
“Edison Mission Energy is a great fit with NRG, as virtually 100% of their assets, their particular expertises and the balance of their technologies deployed complement NRG’s own assets, personnel and businesses,” said David Crane, CEO of NRG Energy. “We look forward to working with EME’s employees, its management and its owners to close this transaction expeditiously and ensure that the ensuing integration achieves the best possible outcome for all concerned.”
“We are pleased to have reached this agreement with NRG, which maximizes the value of our company for all of our stakeholders and paves the road for our emergence from Chapter 11,” commented EME President Pedro Pizarro. “NRG is a leader in our industry, and its proposed acquisition of Edison Mission Energy is a powerful affirmation of the reputation and performance the men and women of EME have achieved over the past 25 years. We believe NRG and EME are a great fit operationally. We will continue to operate our fleet of coal, gas and wind energy facilities as we move through this transition and remain focused on ensuring safe and reliable operations.”
The purchase will increase NRG’s generation portfolio by nearly 8000 MW, providing additional fuel diversity, geographic diversity and opportunities to achieve economies of scale.
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/21102013/nrg_energy_acquire_coal_fired_power_plants_156/