Conectiv, National Fuel Acquire 80 MW PA Plant
NFR Power Inc., a subsidiary of National Fuel Gas Co., and Conectiv Mid-Merit Inc., a subsidiary of Conectiv, jointly announced last Tuesday that the companies have acquired an 80 MW combined-cycle, natural gas-fired power plant in northeastern Pennsylvania from NEPA Energy LP, a subsidiary of Welch Foods Inc.
The 10-year-old plant will still provide steam to Welch's facility, which is located next to the plant, while the electricity output from the plant will be funneled to the New York Power Pool that serves the state and nearby areas. The deal was completed on April 30. Terms of the transaction were not disclosed.
NFR Power and Conectiv Mid-Merit each own 50% of Energy Systems North East LLC, the entity they formed to own and operate the facility. National Fuel's exploration and production subsidiary will supply gas to the plant, while Conectiv's subsidiary, Conectiv Operating Services Co., will operate it. The plant will be operated as a merchant facility.
"The purchase of this power plant is consistent with NFR Power's growth strategy," said Bruce H. Hale, president of NFR Power. "We are pleased to have formed this partnership with Conectiv, and we are confident that this plant will be an efficient and economic source of power, making it a strong competitor in the wholesale electric marketplace."
Conectiv Energy Vice President Art Agra added, "The acquisition of this facility is another step in executing Conectiv's strategy of focusing on the mid-merit energy market. The location of the facility will allow us to sell into either the NY ISO or PJM marketplace over time, giving us the flexibility needed to optimize the value of this asset."
Conectiv Senior Vice President Bill Spence said this acquisition and 360 MW of new generating capacity that is scheduled to come online at Conectiv's Hay Road power plant near Wilmington, DE, will bring the company's mid-merit capacity to 1,600 MW.
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