FirstEnergy subsidiaries apply for authorization to sell eleven hydroelectric power stations to Harbor Hydro Holdings, LLC
Friday, Sep 06, 2013
AKRON, Ohio, Sept. 4, 2013 /PRNewswire/ -- FirstEnergy Corp. (NYSE: FE) subsidiaries have applied for authorization from the Federal Energy Regulatory Commission (FERC) to sell 11 hydroelectric power stations in Pennsylvania, Virginia and West Virginia to Harbor Hydro Holdings, LLC, a subsidiary of LS Power Equity Partners II, LP. A sales agreement was reached on August 23, and if approved, the proposed transaction is expected to close in the fourth quarter of 2013. The agreement is subject to customary and other closing conditions, including FERC, the Commonwealth of Virginia's State Corporation Commission and various other approvals.
The hydroelectric power stations included in this proposed sale are owned by FirstEnergy Generation, LLC, Allegheny Energy Supply Company, LLC and Green Valley Hydro, LLC and have a total capacity of 527 megawatts, which represents less than 3 percent of FirstEnergy's generation fleet output. The sale includes: Seneca Pumped Storage (451 MW) in Warren, Pa.; Allegheny Lock & Dam 5 (6 MW) in Schenley, Pa.; Allegheny Lock & Dam 6 (7 MW) in Ford City, Pa.; Lake Lynn (52 MW) in Lake Lynn, Pa.; Millville (3 MW) in Millville, W. Va.; Dam 4 (2 MW) in Shepherdstown, W. Va.; Dam 5 (1.2 MW) in Falling Waters, W.Va.; Warren (750 kW) in Front Royal, Va.; Luray (1.6 MW) in Luray, Va.; and Shenandoah and Newport (860 kW and 1.4 MW, respectively) in Shenandoah, Va. Resolution of a potential competing license application and other claims related to the Seneca facility also is a condition to closing the proposed transaction.
The 35 current employees at these power stations are expected to be retained by the new owner. FirstEnergy subsidiary Allegheny Generating Company will continue to own 1,200 MW of the 3,000 MW Bath County Pumped-Storage Hydro facility in Warm Springs, Va. In addition, FirstEnergy subsidiary Jersey Central Power & Light (JCP&L) will continue to own 200 MW of the 400 MW Yards Creek Pumped-Storage Hydro facility in Blairstown, N.J.
FirstEnergy operates one of the nation's largest, cleanest and most diverse generating fleets, with 60 percent coal, 20 percent nuclear, 11 percent hydro and other renewables, and 9 percent gas/oil.
FirstEnergy is a diversified energy company dedicated to safety, reliability and operational excellence. Its 10 electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. Its generation subsidiaries currently control more than 20,000 megawatts of capacity from a diversified mix of scrubbed coal, non-emitting nuclear, natural gas, hydro, pumped-storage hydro and other renewables. Follow FirstEnergy on Twitter @FirstEnergyCorp.
LS Power, an employee-owned, independent power company with offices in New York, New Jersey, Missouri and California, is a developer, owner, operator and investor in power generation and electric transmission infrastructure throughout the United States.
SOURCE FirstEnergy Corp.