Energy Future Holdings (EFH) subsidiary Luminant has acquired two combined-cycle natural gas plants in Texas, having received regulatory approval from the Public Utility Commission of Texas and closing on the acquisition April 4.
These generating assets represent nearly 3,000 MW of capacity in the competitive Electric Reliability Council of Texas (ERCOT) market: the Forney Power Plant in Forney with a capacity of 1,912 MW and the Lamar Power Plant in Paris with a capacity of 1,076 MW.
Luminant had sought Texas PUC approval late last year to buy the power plants from a NextEra (NYSE:NEE) subsidiary.
With their combined capacity, these plants can power 1.5 million homes in normal conditions.
As the company assumes operational control of the Lamar and Forney plants, Luminant Senior Vice President-Fossil Generation Steve Horn said, “These are excellent, well-run plants and very competitive in the ERCOT market. Of course, the greatest assets at these plants are the people who run them. They do a tremendous job, and we’re so excited about getting to know them better,” Horn said.
There are 30 to 40 NextEra Energy Resources employees at each location, and they will continue to run the plants through a short-term agreement with NextEra before they’re transitioned to be employees of Luminant.
The deal involves an estimated $1.3bn purchase price ($440 per installed kilowatt) plus approximately $239m for cash and about $37m for net working capital, subject to customary adjustments.