Direct Energy Announces Sale Of Three Texas Power Plants To Blackstone
HOUSTON, Dec. 18, 2013
HOUSTON, Dec. 18, 2013 /PRNewswire/ -- Direct Energy, a subsidiary of Centrica
plc (LSE: CNA), has reached an agreement with Blackstone (NYSE: BX) to sell
its three gas-fired power generation facilities in Texas for $685 million in
cash. The facilities, located in Bastrop, Mission, and Paris, Texas, are part
of the Electric Reliability Council of Texas' (ERCOT) North and South zones
and total approximately 1,295 megawatts (MW) of capacity.
As part of the transaction, an affiliate of Direct Energy has entered into a
three year call option arrangement for an equivalent amount of capacity with
Badar Khan, President and CEO of Direct Energy, said: "This transaction allows
us to realize 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."
The transaction is subject to regulatory review and is expected to close in
the first quarter of 2014.
oThe transaction will be made through Centrica plc's affiliate, Direct
Energy Power Holdings, Inc.
oThe power plants to be sold by Direct Energy Power Holdings, Inc. are
Year of purchase ERCOT region Installed capacity (MW)
Bastrop 2004 South 540
Frontera (Mission) 2004 South 495
Paris 2006 North 260
About Direct Energy
Direct Energy is one of North America's largest energy and energy-related
services providers with more than six million residential and commercial
customer relationships. Direct Energy provides customers with choice and
support in managing their energy costs through a portfolio of innovative
products and services. A subsidiary of Centrica plc (LSE:CNA), one of the
world's leading integrated energy companies, Direct Energy operates in 46 U.S.
states plus the District of Columbia and 10 provinces in Canada. For more
information, visit www.directenergy.com.
SOURCE Direct Energy
Contact: Micah Hirschfield, Direct Energy, micah.hirschfield@directenergy,com,
+1 713 877 3805
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