Dive Brief:

• NRG Energy is considering switching some Illinois coal plants the company is buying from Edison Mission Energy to natural gas.
• The company is evaluating the assets it is buying for $2.6 billion. "The idea is to stop the hemorrhaging from the plants that are chronically losing money," NRG CEO David Crane told analysts.
• NRG expects to close the $2.6 billion deal early this year. NRG is buying about 4,300 MW of coal-fired plants in Illinois, 1,600 MW of gas-fired generation and 400 MW of oil and waste coal-fired capacity. The deal also includes 1,700 MW of wind.

Dive Insight:

With Midwest wholesale power prices remaining low, NRG may be forced to retire some of the plants it is buying from Edison Mission. Converting strategically located coal plants to burn natural gas may make economic sense for the company. NRG will likely start making decisions later this year on what exactly to do with the Edison Mission coal plants.