in News Departments > New & Noteworthy
print the content item

NRG Energy Inc. has announced plans to buy most of bankrupt independent power producer Edison Mission Energy's (EME) assets for more than $2.6 billion.

Under the deal, NRG will acquire EME's diverse generation portfolio, which consists of nearly 8 GW of capacity located throughout the U.S. In fact, NRG says EME's 1.7 GW of wind power will nearly quadruple its existing wind generation capacity.

“Edison Mission Energy is a great fit with NRG, as virtually 100 percent of their assets, their particular expertises and the balance of their technologies deployed complement NRG’s own assets, personnel and businesses,” says David Crane, president and CEO of NRG Energy.

On Dec. 17, 2012, EME and several of its subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code, and EME was deconsolidated from parent company Edison International. (In March 2013, long-time joint-development partner Midwest Wind Energy cited EME’s financial troubles as a main reason it chose to sell most of its own portfolio.)

The acquisition and transactions contemplated in the purchase agreement will be consummated as part of an EME Chapter 11 plan, which each of the company’s major stakeholders has agreed to support and pursue.

“We are pleased to have reached this agreement with NRG, which maximizes the value of our company for all of our stakeholders and paves the road for our emergence from Chapter 11,” comments EME President Pedro Pizarro, adding that all of EME’s energy facilities will continue normal operations throughout the process.

In connection with the transaction, NRG says it will assume non-recourse debt of approximately $1.55 billion, of which $273 million is associated with assets designated as non-core assets pursuant to the asset purchase agreement.

NRG expects to close the transaction in the first quarter of 2014. In addition to the approval of the bankruptcy court, the deal is subject to customary closing conditions.



Trachte Inc._id1770
Latest Top Stories

Alberta Breaks Wind Power Record, Then Does It Again

Last week, the Alberta Electric System Operator recorded new wind production peaks in the Canadian province - highlighting how well the grid integrated the renewable energy.


Federal Appeals Court Finds Obama's Wind Farm Decision Unconstitutional

A federal appeals court ruled that the U.S. government violated the constitutional rights of Chinese-owned Ralls Corp. when ordering the divestment of four Oregon wind farms.


Renewables Make Up Over 50% Of New U.S. Power In First Half Of 2014

According to a recent government report, renewable energy sources, such as wind and solar, continue to dominate new electric generating capacity.


Suzlon Facility Lends Key Assist In Developing 'The Wind Technicians Of Tomorrow'

The turbine manufacturer’s Elgin, Ill.-based training facility is the culmination of a program that puts a new twist on a proven method of instruction.


Having Their Say: CanWEA Clarifies True Source Of Canadian Wind Success

The Canadian Wind Energy Association (CanWEA) takes issue with a recent report summary regarding various renewable energy policies in North America.

Canwea_id1984
Navigant_id1983
Renewable NRG_id1934