The 525-MW Seward power plant and the 352-MW Shelby County power plant are being sold to Seward Generation LLC and Rockland Capital LLC, respectively.
“By streamlining our fleet, we can create additional value for our shareholders and meet the needs of our customers with reliable, efficient and economic power,” said David Crane, CEO NRG. “This is part of our ongoing and deliberate strategy of portfolio optimization.”
Under the sales agreement, NRG Energy Services will provide operations and maintenance services for the Seward facility in New Florence, Pennsylvania.
Seward is in the PJM Interconnection while the Neoga, Illinois Shelby County facility is in the MISO Interconnection.
The aggregate purchase price for both facilities — owned by GenOn Energy Inc., an excluded project subsidiary of NRG – is about $138 million cash and other consideration.
Assets are projected to average $10.5 million of Adjusted EBITDA annually over the next three years and require about $17 million in maintenance capital expenditures over the same period.
Subject to regulatory approval, the transactions are expected to close in the first quarter of 2016.