NRG Said to Seek Debt to Build Southern California Power Plant

  • Carlsbad gas plant will replace Encina Generating Station
  • NRG said to be seeking to borrow as much as $600 million

NRG Energy Inc., the biggest U.S. independent power producer, is seeking to borrow money for a natural gas-fired power plant in southern California, according to two people familiar with the deal.

The company has reached out to lenders and may borrow as much as $600 million, according to one of the people, who asked not be identified because he’s not authorized to discuss the deal. David Knox, a spokesman for Princeton, New Jersey-based NRG, confirmed that the company is evaluating financing options for the 500-megawatt project.

The California Public Utilities Commission approved in May San Diego Gas & Electric Co.’s power-purchase agreement for the project in Carlsbad. The peaking power plant is expected to be completed in 2017 and will replace the Encina Generating Station, which will subsequently be closed.

NRG’s yieldco unit NRG Yield Inc. has a right of first offer for the Carlsbad plant.

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