The 1,980-MW Union Power plant near El Dorado, Arkansas, is now officially part of the Entergy (NYSE:ETR) generation fleet, the company said March 4.
Entergy said in a news release that subsidiaries Entergy Arkansas, Entergy Louisiana, and Entergy New Orleans, have completed their purchase of the natural gas-fueled power plant on March 3.
The four-unit combined-cycle natural gas power plant, which began commercial operation in 2003, has a summer rating of 1,980-MW.
In December 2014, Entergy announced an agreement with Union Power Partners, an independent power producer wholly-owned by Entegra TC LLC, to acquire the units.
The plant purchase price is approximately $948m ($479/kW), or approximately $237m per unit, subject to adjustments. The purchase price is about half the cost to build a comparable new combined-cycle facility, Entergy said.
Entergy Arkansas and Entergy New Orleans each acquired one unit and Entergy Louisiana acquired two units.
Entergy got one of the last necessary approvals in late October 2015 when the Louisiana PSC signed off on the purchase. Initially, Entergy Texas was going to buy one of the units at the Union plant but that option ran into opposition in Texas. As a result, Entergy New Orleans replaced Entergy Texas as one of the purchasing utility subsidiaries.