The sales price is contingent on normal purchase price adjustments, according to NRG officials. The acquisition of the two facilities is expected to close during the first six months of 2001.
The Bridgeport plant is a coal-fired 590 megawatt (MW) facility on 98.1 acres. The New Haven Harbor plant is an oil and gas-fired plant located on 71 acres.
"Acquiring these generating facilities is consistent with NRG's strategy of developing and maintaining a top-three position in the Northeast and will be accretive to our earnings immediately after the acquisition closes," says David H. Peterson, chairman, president and chief executive officer of NRG. "In light of this acquisition, NRG is increasing its 2001 earnings per share estimate to roughly $1.30."
The purchase adds 1,051 MW to NRG's current portfolio of 15,007 net MW of assets that includes 2,234 MW in the state of Connecticut that NRG purchased in late 1999. NRG's Connecticut assets consists of four steam electric generating stations--Devon, Middletown, Montville (Uncasville), and Norwalk Harbor--and four remote jet stations--Branford, Cos Cob, Torrington (Franklin Drive) and Torrington Terminal.
"This acquisition adds baseload coal-fired generation which will diversify our current Northeast asset portfolio," notes Craig A. Mataczynski, president of NRG North America. "It is important to maintain fuel diversity along with affordable energy for Connecticut energy consumers and NRG plans to protect and invest in Connecticut's future energy stability in an environmentally-sensitive manner."
Mataczynski relates that NRG plans to work with the Connecticut Department of Environmental Protection to secure approval for adding pollution control technology to the Bridgeport Harbor station.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
