FirstEnergy finds buyer for Pennsylvania power plants

• 7 years ago (2016-12-09)
• David Flin

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FirstEnergy Corporation of Ohio, USA, owner of West Penn Power, has announced that a provisional deal has been reached to sell four natural gas-fired power plants in Pennsylvania.

FirstEnergy has a nonbinding letter of intent to sell the plants to an unidentified buyer for $885 million. The deal also includes the buyer assuming $335 million of debt, according to a filing with the Securities and Exchange Commission. The company said that the plants in Springdale, Gans, Chambersburg, and Hunlock have a combined net value of about $1.2 billion.

FirstEnergy is also selling its ownership interest in the Bath County hydroelectric power plant along the Virginia/West Virginia border. That ownership interest is included in the total value of the sale.

FirstEnergy announced last month that it intended to sell its natural gas and hydroelectric power plants to become a regulated utility. Charles Jones, CEO of FirstEnergy, said that the company does not want to remain in the power generation business, and the four gas-fired plants in Pennsylvania were attractive to potential buyers.