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GenOn aims to purchase lease interests in 2 Md. coal-fired plants

GenOn Holdings Inc. is seeking permission from the Federal Energy Regulatory Commission for a transaction in which subsidiary GenOn Mid Atlantic will purchase and terminate lease interests in two coal-fired power plants that it owns.

"The end result of the transaction is that [GenOn Mid Atlantic]'s operational control of the leased facilities will remain unchanged, but [GenOn Mid Atlantic]'s interest in the leased facilities will be converted from a leasehold interest to fee simple ownership," the company said in an Oct. 11 filing. "Post-transaction, [GenOn Mid Atlantic] will be the sole owner and operator of the currently-leased facilities and will continue to operate its business consistent with past practice."

GenOn aims to purchase four of the undivided passive ownership interests held by owner-lessors at the 519-MW Dickerson plant and seven leases at the 1,205-MW Morgantown plant; both plants are in Maryland.

Both power facilities are interconnected to PJM Interconnection through Exelon Corp. subsidiary Potomac Electric Power Co., according to an Oct. 11 regulatory filing. (FERC docket EC20-9)

NRG Energy Inc. is GenOn's parent company.