FERC signs off on NRG Energy’s sale of El Segundo to NRG Yield

The Federal Energy Regulatory Commission on May 8 approved the sale by NRG Energy (NYSE: NRG) to newly-created affiliate NRG Yield (NYSE: NYLD) of the gas-fired El Segundo power plant in California.

This is the latest, and certainly not the last, in a series of power plants sales or “drop downs” that NRG Energy is making with NRG Yield.

On April 4, El Segundo Energy Center LLC filed for FERC approval of the indirect transfer of 100% of the membership interests in El Segundo from NRG Energy to NRG Yield. El Segundo owns and operates an approximately 550-MW generation facility located in El Segundo, Calif. The facility is interconnected with the transmission grid controlled by the California Independent System Operator.

The output of the facility is fully committed to a non-affiliated third party under a long-term contract. El Segundo is an exempt wholesale generator and has market-based rate authority.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.