FirstEnergy Knocks $100M Off Sale Price of 4 PA Gas Power Plants

FirstEnergy, based in Akron, OH, is one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. FirstEnergy owns a variety of regulated and non-regulated power generation plants. Last November the company announced it wants to sell five power generating plants, four of them natural gas-fired plants in Pennsylvania, plus a hydroelectric plant in Virginia (see FirstEnergy Selling 4 NatGas-Fired Electric Plants in PA). The plants being sold are non-regulated–part of FirstEnergy’s strategy to become a 100% “regulated” utility in the next 12 months. Last December FirstEnergy announced they had found a buyer, LS Power Equity Partners, willing to pay $885 million (later revised to $925 million) for the whole package (see FirstEnergy Finds Buyer for 4 PA NatGas-Fired Power Plants). However, negotiating the finer points of the deal has been “a challenge” and now FirstEnergy says in order to complete the deal, they’re willing to lower the price to $825 million…

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