CNA: Centrica plc: Disposal
UK Regulatory Announcement
18 December 2013
CENTRICA TO SELL TEXAS GAS-FIRED POWER STATIONS AND EXTEND ITS SHARE
Centrica plc’s North American subsidiary, Direct Energy, has agreed to sell
its Texas gas-fired power stations to Blackstone for $685 million (£420
million) in cash. The three units, located in Paris, Bastrop, and Mission,
have a combined capacity of 1,295MW. As part of the transaction, Direct Energy
has also entered into a three year call option arrangement for an equivalent
amount of capacity with Blackstone.
Badar Khan, President and CEO of Direct Energy, said: “This transaction allows
us to realise value from our gas-fired fleet, while ensuring stability of
price and supply in the Texas power market through the call option
“Residential retail supply is key to our North American business, and with
sufficient generation capacity in Texas, we can support our downstream
business through contractual arrangements, rather than asset ownership.”
Centrica plc will return the proceeds from this sale to shareholders through a
£420 million extension of its share repurchase programme, which will be
conducted over the course of 2014.
Centrica Investor Relations +44 (0) 1753 494900
Centrica Media Relations +44 (0) 800 107 7014
*The transaction is subject to customary regulatory approvals and is
expected to close in the first quarter of 2014.
*The transaction will be made through Centrica plc’s wholly-owned
subsidiary, Direct Energy Power Holdings, Inc.
*The power stations to be sold by Direct Energy are listed below:
Year of purchase ERCOT region Installed capacity (MW)
Bastrop 2004 South 540
Frontera (Mission) 2004 South 495
Paris 2006 North 260
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