NRG to sell Conn. power plants
NRG Energy has sold its Connecticut power plants to the subsidiary of a Boston-based investment firm as part of a larger $760 million deal.
Generation Bridge, a whollyowned subsidiary of ArcLight Energy Partners Fund, has entered into a purchase agreement with Princeton-based NRG Energy. The deal is expected to close during the fourth quarter of this year.
NRG is selling four Connecticut power plants in Middletown, Hartford, Montville and the Devon section of Milford, along with what’s known as Connecticut Jet Power, which covers four remote jet turbines in Cos Cob and Branford and two in Torrington.
Two NRG power plants in California and a pair in New York are being sold as part of the deal. NRG has owned the Connecticut power plants since 1999, according to Dave Schrader, a spokesman for the company.
Schrader said the deal reflects the fact that “NRG is constantly reviewing the make-up of our asset portfolio, assessing the location, type and mix to ensure it is wellsuited for our customer’s evolving needs.”
NRG’s sale of the Connecticut power plants comes even as the company is negotiating with Middletown officials regarding the replacement of two turbines at the natural gas-fired power plant located along the Connecticut River.
The company wants to replace the turbines with one generator that produces fewer emissions and is able to be converted to renewable energy in the future. But local environmentalists claim the result of the plan could increase air pollution, including putting out five times more carbon dioxide than the plant currently produces.
The plant, located at 1866 River Road, uses turbines built in the 1950s and early 1960s and operates as a peaking generation unit, which means it only runs during
peak power demand periods throughout the year.
Any increase of air pollution coming from the plant could create a conflict with Middletown’s Common Council, which voted unanimously in September to declare a climate emergency. The goal is to end city-generated greenhouse gas emissions by or before Dec. 31, 2030.
Schrader said that the company will continue to move forward with the plant upgrade permitting process even as it has “further discussions with the buyer, ArcLight, on their desire to pursue” the project.
Eugene Nocera, majority leader of Middletown’s Common Council, said NRG officials met with the governing body about a week ago
and never said anything about the power plant being sold.
“We were very surprised,” Nocera said. “We are anxious to meet with the new owner and welcome them. We’d also like to know what other possible options there are for the plant.”
Taken collectively, NRG’s Connecticut power generating assets being sold produce about 1,528 megawatts of electricity, which represents about 31.5 percent of the generation capability ArcLight Energy Partners is acquiring.
Officials with ArcLight Energy Partners, which focuses on energy infrastructure investments, did not respond to requests for comment on Wednesday.