NRG plans to sell of a large chunk of its power plant holdings in a bid to improve earnings
The transformation plan was warmly greeted on Wall Street, with shares gaining in trading on Thursday.
NRG operates the Indian River site in Millsboro, the location of Delaware’s last coal-fired power plant. The plant underwent an overhaul that reduced pollution coming from the Sussex County site. NRG also has oil-fired units at the site.
The company did not offer any specifics on sites to be sold and a company spokesperson could not immediately be reached for comment.
Planned are the divestitures of 6 gigawatts of conventional generation and businesses6 and 50-100 percent of its interest in NRG Yield and its renewables platform.
NRG expects to announce signed agreements during the fourth quarter of 2017. NRG has engaged Citi, Goldman Sachs and Morgan Stanley for certain asset sale processes that are well underway, a release stated.
Last month, the company moved its GenOn subsidiary in Chapter 11 bankruptcy proceedings in Wilmington. Plans call for the company’s assets to be placed in the control of entities holding debt notes, Reuters reported.
In addition to its ownership of Indian River, NRG owned Bluewater Wind. The proposed a windfarm off the Delaware coast but struggled with a reluctance by lenders and a surplus of generating capacity.
Companies have since proposed wind projects off the Maryland coast that extend into waters off Delaware.
Meanwhile, NRG has been struggling with low wholesale electricity prices brought on by natural gas discoveries that made plants powered by the fuel more competitive.
Stiffer emissions requirements have also made coal-fired plants more expensive to run.
Delmarva Power owner Exelon has made regulatory filings related to the closing of the Three Mile Island site near Harrisburg, PA, citing the costs of operation.
Three Mile Island was the site of the nation’s most serious nuclear power plant incident. The incident led to restrictions that ended construction of nuclear power plants for many years.
Recent nuclear power plant projects have struggled with cost overruns.
