A pair of Entergy (NYSE: ETR) subsidiaries said Nov. 30 that they have finally completed the purchase of a couple of combined-cycle natural gas plants from KGen Power.
The Entergy affiliates purchase of the Hot Spring and Hinds gas plants was delayed by a U.S. Justice Department investigation into competitive issues, according to public filings.
But that changed Nov. 30 when Entergy Arkansas announced it had completed the purchase of the 620-MW Hot Spring plant near Malvern, Ark. The company purchased Hot Spring for an estimated $253m, which Entergy called “a sizable discount” to the cost of constructing a comparable facility.
Meanwhile, Entergy Mississippi said it had completed its purchase of the 450-MW Hinds power plant in Jackson, Miss. Entergy is buying Hinds for roughly $206m, or much cheaper than the cost of building a similar unit, the purchaser said.
The plant purchase is Entergy Mississippi’s first since 2006.
“This is good news for our customers,” said Entergy Mississippi President and CEO Haley Fisackerly. “Because the facility is within Entergy Mississippi’s service area and was acquired at an attractive price, all of our customers will benefit from the plant.”
Entergy Arkansas President and CEO Hugh McDonald also had praise for the Hot Spring plant.
Regulatory authorities in the respective states had already approved the power plant purchases.
KGen had said in public filings that it wanted to complete the sales so it could proceed with disbanding the KGen company.