FirstEnergy in revised agreement for sale of hydro, gas assets

12 September 2017

FirstEnergy Corp has entered into a revised agreement for the sale of 1615MW of competitive natural gas and hydroelectric generation assets located in Pennsylvania and Virginia to a subsidiary of LS Power Equity Partners III, LP.  The assets will be sold for an all-cash price of $825 million under the terms of the revised agreement signed on August 30, 2017.

The sale, which was originally announced in January, is consistent with FirstEnergy's strategy to transition to a fully regulated company and exit from commodity-exposed generation.

The revised agreement affects six power stations that are owned directly or indirectly by FirstEnergy subsidiaries Allegheny Energy Supply Company, LLC, and Allegheny Generating Company.  The 20 employees at these plants will be offered employment with the new owner.  The transaction includes a portion of Allegheny Generating Company's ownership interest in the 713MW Bath County pumped storage project in Warm Springs, Virginia.

The sale is expected to close in early 2108.

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