Dive Brief:
- NRG Energy will take full control of a 568 MW natural gas-fired power plant in California, while Chevron will to take ownership of six cogeneration plants totaling 716 MW in generating capacity after the U.S. Federal Energy Regulatory Commission (FERC) approved the move Wednesday.
- Each company previously owned 50% of each of the plants. All power plants involved in the deal are in the California Independent System Operator (ISO) footprint.
Dive Insight:
The deal to give full ownership of the six cogeneration facilities to Chevron comes less than a month after NRG Energy bought its 50% stake as part of the $2.6 billion Edison Mission Energy acquisition. Full details of the transaction are currently confidential.
The deal could perhaps aid NRG Energy's efforts to bolster capacity in California since the retirement of the 2,200 MW San Onofre plant last year. Chevron's buy-out reflects the company's move towards more cogeneration.
