NRG, LS Power Asks FERC to Approve $18B Deal for 12 Gas-Fired Plants

A month ago, NRG Energy announced a deal to acquire LS Power’s portfolio of natural-gas power plants in a deal valued at roughly $12 billion, including debt, that will expand NRG’s footprint in Texas and along the East Coast (see NRG Buys 18 Gas-Fired Power Plants, Including 5 in PA, for $12B). NRG said the acquisition would give it 18 more natural-gas-fired facilities in nine states—including five in Pennsylvania and one in Ohio—doubling its generation capacity to about 25 gigawatts (GW). A potential wrinkle in the deal is that the deal increases NRG’s capacity in the PJM Interconnection from 2.1 GW to 9.5 GW. NRG argues the increase doesn’t give the company undue influence in the PJM grid. It's certainly not a monopoly on power in PJM, representing roughly 10% of PJM's average daily output.

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