Entergy divests 583MW Rhode Island State Energy Center to Carlyle Group

8 October 2015 (Last Updated October 8th, 2015 18:30)

Wholesale generation division Entergy, Entergy Wholesale Commodities has signed an agreement to sell its 583MW Rhode Island State Energy Center (RISEC) to Carlyle Power Partners.

Wholesale generation division Entergy, Entergy Wholesale Commodities has signed an agreement to sell its 583MW Rhode Island State Energy Center (RISEC) to Carlyle Power Partners.

The base sales price for the facility is around $490m, subject to closing adjustments.

Entergy chairman and CEO Leo Denault said: "Our strategy for EWC is focused on being disciplined about reducing risk and freeing up financial resources for other opportunities.

"RISEC is among the most efficient combined-cycle facilities in New England, and is well-positioned to capitalise on strong regional market dynamics."

"RISEC has been a very good investment for us, and its sale is consistent with that strategy."

Located at Johnston in Rhode Island, the natural gas-fired, combined-cycle generating plant had been operating since 2002.

Entergy expects the transaction to close by the end of this year, when the gain on sale will be classified as a special item to be excluded from operational earnings.

Carlyle managing director and Carlyle Power Partners co-head Matt O’Connor said: "RISEC is among the most efficient combined-cycle facilities in New England, and is well-positioned to capitalise on strong regional market dynamics.

"New England represents an attractive market for investment due to its transparency and incentives for reliable generation.

"Additionally, the retirement of ageing generation in the region is putting a greater emphasis on efficient gas-fired generators, like RISEC, to meet everyday electricity demand."