NRG Announced Acquisition of Texas Natural Gas Plants

SEATTLE (Oil Monster): NRG Energy has entered into a definitive agreement with Texas-based Rockland Capital, LLC towards acquisition of six power generation facilities. The transaction is likely to add approximately 738 megawatts (MW) of natural gas-fired capacity to its existing portfolio. The acquisition s subject to necessary regulatory approval and is expected to close in Q2 this year.

The acquisition comprises of one combined-cycle unit and five peaker units.The cost of acquisition of these assets are estimated at significantly lower levels than the cost of new construction. The transaction will be entirely funded through corporate debt and will have no impact at all on the company’s previously stated capital allocation plan.

Commenting on the acquisition, Robert J. Gaudette, the executive vice president and president of NRG business and wholesale operations said that it will reinforce the company’s position as a leading generator in Texas. The expansion of its natural gas generation portfolio with modern, flexible assets will also create long-term value for its shareholders, Gaudette added.

With electricity consumption to grow by nearly 77% through 2030, Texas is projected to be the fastest growing electricity sector market in the U.S.