Wednesday, February 16, 2011

FirstEnergy and AMP enter talks on sale of 707 MW electric power plant

FirstEnergy Corp. entered into a non-binding Memorandum of Understanding for the sale of its 707 MW natural gas-fired Fremont Energy Center in Fremont, Ohio, to American Municipal Power Inc.

The companies will negotiate a definitive agreement by March 11, 2011 for AMP to buy the facility on or about July 1, 2011.

Fremont Energy Center is a combined cycle generation plant owned by FirstEnergy unit FirstEnergy Generation Corp. The plant is under construction and scheduled to be complete in 2011. The plant includes two natural gas turbines and a steam turbine capable of producing 544 MW of load following capacity and 163 MW of peaking capacity.

FirstEnergy acquired the partially complete plant in January 2008 from Calpine Corp. for $254 million in that company’s bankruptcy proceeding. FirstEnergy said the proposed sale is consistent with FirstEnergy’s current efforts to divest non-strategic assets and use the proceeds to provide the company with additional financial strength and flexibility.

Read more news and features on the business of power generation.

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