NRG Energy to Acquire Corpus Christi, Texas Cogeneration Plant

  NRG Energy to Acquire Corpus Christi, Texas Cogeneration Plant

  Plant will expand NRG’s growing cogeneration fleet as it provides NRG with
additional cost-effective baseload power in one of the fastest growing states
                                in the nation

Business Wire

PRINCETON, N.J. & HOUSTON -- April 8, 2013

NRG Energy, Inc. (NYSE: NRG), has entered into an agreement with a consortium
of affiliates of Atlantic Power Corporation, John Hancock Life Insurance
Company (U.S.A.), and Rockland Capital, LLC to acquire the Gregory
cogeneration plant in Corpus Christi, Texas. The cogeneration plant is
equivalent to an approximately 560 megawatt (MW) Combined Cycle Gas Turbine
plant with generation capacity of approximately 400 nominal MW and steam
capacity of more than a million pounds per hour (160 MW of electricity
equivalent). NRG is paying approximately $244 million for the plant. Counting
both electrical generation and steam production, this cost equates to
approximately $436 per kilowatt.

“The addition of what is, in effect, a six heat rate, fast start, gas-fueled
plant at a significant discount to replacement cost is an invaluable addition
to our Texas fleet, particularly at this time with market rules and supply
conditions in Texas placing a premium on flexible operations,” said David
Crane, President and Chief Executive Officer of NRG.

The Gregory cogeneration plant provides steam, processed water and a small
percentage of its electrical generation to the Corpus Christi Sherwin Alumina
plant. The majority of the baseload generation is available for sale in ERCOT.
This adds greater NRG capacity in ERCOT’s south zone, where the company
currently serves significant retail load and looks to continue to expand its
customer base in this growing part of the state. The Gregory cogeneration unit
came online in 2000.

“The Gregory plant’s long-term steam contract and additional generation in a
zone where NRG sees significant growth potential complements our wholesale and
retail positions in the State exceptionally well,“ said John Ragan, president
of NRG’s Gulf Coast region. “Adding Gregory to NRG’s existing portfolio of
cogeneration and combined cycle plants also increases our ability to share
expertise and best practices across Texas and the nation.”

The transaction is subject to customary closing conditions including Hart
Scott Rodino pre-merger notification clearance and approval from Public
Utility Commission of Texas, as well as third party consents. The transaction
is expected to close in the third quarter.

About NRG

NRG is at the forefront of changing how people think about and use energy. We
deliver cleaner and smarter energy choices for our customers, backed by the
nation’s largest independent power generation portfolio of fossil fuel,
nuclear, solar and wind facilities. A Fortune 300 company, NRG is challenging
the U.S. energy industry by becoming the largest developer of solar power,
building the first privately-funded electric vehicle charging infrastructure,
and providing customers with the most advanced smart energy solutions to
better manage their energy use. In addition to 47,000 megawatts of generation
capacity, enough to supply nearly 40 million homes, our retail electricity
providers – Reliant, Green Mountain Energy and Energy Plus – serve more than
two million customers. More information is available at
Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy.

NRG Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements are subject to certain
risks, uncertainties and assumptions and include NRG’s expectations regarding
the Gregory cogeneration plant and forward-looking statements typically can be
identified by the use of words such as “will,” “expect,” “believe,” and
similar terms. Although NRG believes that its expectations are reasonable, it
can give no assurance that these expectations will prove to have been correct,
and actual results may vary materially. Factors that could cause actual
results to differ materially from those contemplated above include, among
others, general economic conditions, hazards customary in the power industry,
competition in wholesale power markets, the volatility of energy and fuel
prices, failure of customers to perform under contracts, changes in the
wholesale power markets, and changes in government regulation of markets and
of environmental emissions,. NRG undertakes no obligation to update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise. The foregoing review of factors that could cause NRG’s
actual results to differ materially from those contemplated in the
forward-looking statements included in this news release should be considered
in connection with information regarding risks and uncertainties that may
affect NRG’s future results included in NRG’s filings with the Securities and
Exchange Commission at


Dave Knox, 713-537-2130
Dave Gaier, 609-524-4529
Chad Plotkin, 609-524-4526
Andy Davis, 609-524-4527
Press spacebar to pause and continue. Press esc to stop.