CHAMBERSBURG, Pa. — As part of a larger deal, FirstEnergy has sold a natural-gas-fired power plant near Chambersburg.
The facility is among those being sold to LS Power Equity Partners II LP and its subsidiaries, according to Jennifer Young, a spokeswoman for FirstEnergy. The deal has been in the works for some time and closed in December, according to a Franklin County deed transfer report.
FirstEnergy previously disclosed the overall agreement, which is an $825 million sale of six power stations owned directly or indirectly by FirstEnergy subsidiaries Allegheny Energy Supply Co. LLC and Allegheny Generating Co. The 20 employees at the plants will be offered employment with the new owner.
According to that announcement, the sale is consistent with FirstEnergy’s strategy to transition to a fully regulated company and get out of the commodity-exposed power generation business.
In December, Young said, FirstEnergy and LS Power closed part of the deal, a $390 million pact for four gas-fired plants. Among them was the 88-megawatt Chambersburg Generating Facility Units 12-13 in Guilford Township. The Franklin County record shows the deed being transferred from Allegheny Energy Supply Co. LLC to Chambersburg Energy LLC.
The other three plants covered in the December closing include:
• The 638-megawatt Springdale Generating Facility in Allegheny County, Pa.
• The 88-megawatt Gans Generating Facility in Fayette County, Pa.
• The 45-megawatt Hunlock Creek facility in Luzerne County, Pa.
The sale of the other two plants is expected to close in the first quarter of 2018. Those are:
• A portion of Allegheny Generating Co.’s ownership interest in the Bath County Hydro station (a 713-megawatt, pumped-storage facility) in Warm Springs, Va., which represents Allegheny Energy Supply’s competitive interest.
• Allegheny Energy Supply’s indirect interest in a joint venture that owns the 43-megawatt Buchanan Generating Facility in Oakwood, Va.
FirstEnergy previously said it is expected that proceeds from the sales will be invested in FirstEnergy’s unregulated money pool and may be used for the repayment of debt and other corporate purposes.
When the overall sale is complete, FirstEnergy will own or control generating capacity totaling approximately 15,337 MW from nuclear, coal, gas, hydro, wind and solar facilities across Ohio, Pennsylvania, West Virginia, New Jersey, Virginia and Illinois.
FirstEnergy’s 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. The company’s transmission subsidiaries operate more than 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions.