The Federal Energy Regulatory Commission (FERC) has signed off on NRG Energy’s plan to acquire nearly 13 GW of natural gas-fired power plants, along with another 6 GW of generation assets. The agency on November 13 said it supports Houston, Texas-based NRG’s $12-billion deal with New York-based LS Power for capacity in the PJM market territory.
The deal includes the purchase of 18 natural gas-fired power plants across nine states, including in Texas and the U.S. Northeast. It also includes NRG’s acquisition of CPower, a commercial and industrial virtual power plant platform with about 6 GW of capacity under contract. CPower was previously owned by LS Power. The agreement approved by FERC on Friday was originally announced in May of this year.
FERC in approving the deal rejected an argument by PJM Interconnection’s market monitor that NRG’s purchase would have a negative impact on market competition in the grid operator’s territory. FERC said an analysis concluded NRG would not have unreasonable influence over market prices, even as the group’s generation capacity in PJM rises to 9.5 GW from its current 2.1 GW. The deal is expected to close in the first quarter of next year.
The agreement is expected to nearly double the Texas-based company’s generation fleet.
Larry Cohen, NRG chair, president, and CEO, at the time the deal was announced said: “This acquisition transforms NRG’s generation fleet and broadens our customized product offerings, enhancing our ability to bring the future of energy to millions of customers across the U.S. The transaction is financially compelling as it strengthens our credit profile and turbocharges NRG’s growth rate, while also supporting continued robust capital returns. We are in the early stages of a power demand supercycle, and we are excited to lead the way with reliable energy solutions that will drive considerable value for NRG and all of our stakeholders.”
—Darrell Proctor is a senior editor for POWER.
