Three natural gas-fired power plants in Texas sold for $685mn

Direct Energy, a subsidiary of Centrica, will sell three natural gas-fired power plants in Texas to Blackstone (NYSE: BX) for $685 million in cash.

The plants are the 540 MW Bastrop, 495 MW Frontera (Mission) and the 260 MW Paris power plants that are all part of the Electric Reliability Council of Texas’ (ERCOT) North and South zones.

As part of the deal, an affiliate of Direct Energy signed a three-year call option for an equivalent amount of capacity with Blackstone. The transaction is expected to close in the first quarter of 2014.

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