NRG Energy ‘drops down’ next series of power plants to NRG Yield

NRG Yield (NYSE: NYLD) has completed its previously announced second acquisition of assets from NRG Energy (NYSE: NRG) for $480m in total cash consideration, plus assumed project debt of $737m (as of Dec. 31, 2014) excluding adjustments for working capital.

The acquisition, which totals 785 MW of operating capacity, includes the following assets:

  • Walnut Creek – 500-MW natural gas-fired facility located in City of Industry, California;
  • Tapestry – three wind facilities totaling 204 MW, including Buffalo Bear (19 MW) in Oklahoma, Taloga (130 MW) in Oklahoma, and Pinnacle (55 MW) in West Virginia; and
  • Laredo Ridge – 81 MW wind facility located in Petersburg, Nebraska.

“With the completion of this drop-down transaction from NRG Energy, we continue to deliver on our growth strategy,” said David Crane, NRG Yield’s Chairman and Chief Executive Officer, in a Jan. 5 statement. “This transaction, when coupled with the remaining opportunities that may be presented by NRG Energy, gives us confidence in both our strategy and dividend growth targets.”

NRG Yield owns a diversified portfolio of contracted renewable and conventional generation and thermal infrastructure assets in the U.S., including fossil fuel, solar and wind power generation facilities. Its thermal infrastructure assets provide steam, hot water and/or chilled water, and in some instances electricity, to commercial businesses, universities, hospitals and governmental units in multiple locations.

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.