Allegheny Energy Supply Co. on Dec. 13 completed the sale of its four natural gas-fired power facilities in Pennsylvania to LS Power Group affiliate Aspen Generating LLC for net proceeds of about $390 million.
The sale price was adjusted based on the timing of the closing as per the terms of the asset purchase agreement between the parties, according to a Form 8-K filing. The transaction is part of FirstEnergy Corp.'s revised agreement to sell a 1,615-MW portfolio of competitive natural gas and hydroelectric generation in Pennsylvania and Virginia to Aspen for $825 million in cash, subject to adjustments.
The gas-fired plants sold were: the 88-MW Allegheny Energy units 1 and 2, and 550-MW Allegheny Energy units 3, 4 and 5 units, jointly referred to as the Springdale plant; the 88-MW Allegheny Energy units 8 and 9, or Gans plant; the 88-MW Allegheny Energy units 12 & 13, or Chambersburg facility; and the 45-MW AE Hunlock 4 plant.
The sale of Allegheny Generating Co.'s 713-MW ownership interest in the Bath County hydroelectric plant in Virginia and AE Supply's 43-MW indirect interest in the Buchanan Generation LLC gas plant in Virginia is expected to close in the first quarter of 2018.
The sale proceeds will be invested in the company's unregulated money pool and may be used for the repayment of debt, among other corporate purposes.
