AKRON, Ohio, Feb. 5, 2003 -- FirstEnergy Corp. subsidiaries submitted filings Wednesday with U.S. Bankruptcy Court in Minnesota seeking permission to file a demand for arbitration against NRG Energy, Inc., regarding the $1.5 billion sale of four power plants to NRG Able Acquisitions LLC. NRG Energy guaranteed the obligations of its Able Acquisitions affiliate under the agreements.
The sale was cancelled on August 8, 2002, because of the anticipatory breach of certain obligations in the agreements by NRG Able Acquisitions. Under terms of the agreements, announced on November 29, 2001, NRG would have purchased the Ashtabula, Bay Shore, Eastlake, and Lakeshore plants, which have a generating capacity of 2,535 megawatts.
FirstEnergy is a registered public utility holding company headquartered in Akron, Ohio. Its electric utility subsidiaries comprise the nation's fourth largest investor-owned electric system, based on serving 4.3 million customers. Its subsidiaries and affiliates are involved with the generation, transmission and distribution of electricity; exploration and production of oil and natural gas; transmission and marketing of natural gas; and energy management and other energy-related services.