FirstEnergy has completed the sale of 11 hydroelectric power stations in Pennsylvania, Virginia and West Virginia to Harbor Hydro Holdings, an indirect, wholly-owned subsidiary of LS Power Equity Partners II, for a cash consideration of around $395m.
Having reached a sales agreement with LS Power affiliates on 23 August 2013 and received approval from the US Federal Energy Regulatory Commission in November 2013, FirstEnergy subsidiaries have completed the sale of the plants.
FirstEnergy subsidiaries include Allegheny Energy Supply Company, FirstEnergy Generation and Green Valley Hydro that own the power stations totalling 527MW, which represents less than 3% of FirstEnergy's generation fleet output.
The stations include 451MW Seneca Pumped Storage in Warren; 6MW Allegheny Lock and Dam 5 in Schenley; 7MW Allegheny Lock and Dam 6 in Ford City; and 52MW Lake Lynn, all located in the state of Pennsylvania.
The 3MW Millville plant; 2MW Dam 4 in Shepherdstown and 1.2MW Dam 5 in Falling Waters are located in West Virginia, while the Virginia plants include 750kW Warren in Front Royal; 1.6MW Luray; 860kW Shenandoah and 1.4MW Newport in Shenandoah.
All the plants are bought by Seneca Generation, Lake Lynn Generation, All Dams Generation and PE Hydro Generation, wholly-owned subsidiaries of Harbor Hydro Holdings. The new owner will retain 35 current employees at these power stations.
The transaction is part of FirstEnergy's May 2013 plan to sell up to 1,240MW of unregulated non-core hydroelectric assets.
Image: FirstEnergy subsidiaries sold hydro power stations totalling 527MW. Photo: courtesy of Freedigitalphotos.