The Federal Energy Regulatory Commission on Friday approved Vistra’s $6.3 billion plan to buy Energy Harbor as long as the company sells nearly 400 MW of fossil fuel generation to allay concerns it could exert market power in the PJM Interconnection after the deal is complete.
In the decision, FERC adopted Vistra’s proposal that it would sell two generating assets in Ohio, but rejected calls by PJM’s market monitor and others to go further in limiting Vistra’s market behavior after the deal closes.
FERC’s approval was the last regulatory hurdle needed before the deal’s planned completion in the “coming weeks,” the Irving, Texas-based independent power producer said Monday.
Energy Harbor’s primary assets are three nuclear power plants — Beaver Valley, Davis-Besse and Perry — totaling 4,048 MW in Ohio and Pennsylvania. It also has about 1 million competitive retail customers that bought about 36.7 million MWh in 2022, according to a mid-January Vistra presentation.
Vistra owns about 37.8 GW, including the 2.4-GW Comanche Peak nuclear power plant in Texas.
Energy Harbor’s assets will be added to Vistra Vision, a newly formed clean energy subsidiary that will have 6.4 GW of nuclear generation, about 5 million retail customers, and about 2.4 GW of renewable energy and energy storage projects that are online or under development.
Vistra will own 85% of Vistra Vision and Energy Harbor’s majority owners — funds affiliated with Nuveen Asset Management and Avenue Capital Management II — will own the rest of it.
Vistra pledged to enter into a deal to sell its 369-MW gas- and oil-fired Richland power plant and 17-MW oil-fired Stryker unit within 180 days of the Vistra-Energy Harbor closure.
FERC said Vistra can’t sell the units to any of its affiliates or control the plants’ output after it sells them.
The commission rejected calls by the Office of the Ohio Consumers’ Counsel and the Northeast Ohio Public Energy Council to examine how the Vistra-Energy Harbor merger could affect Ohio’s competitive retail electric service and standard offer rates. FERC would only be required to make that review if the Public Utilities Commission of Ohio asked it to, which it didn’t, according to the agency.
