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.