PJM Monitor Asks FERC to Impose Conditions on NRG, LS Power Deal
In May, 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 add 18 more natural-gas-fired facilities in nine states, including five in Pennsylvania and one in Ohio, doubling its generation capacity to approximately 25 gigawatts (GW). In June, NRG asked the Federal Energy Regulatory Commission (FERC) to approve the deal (see NRG, LS Power Asks FERC to Approve $18B Deal for 12 Gas-Fired Plants). “Not so fast,” says Monitoring Analytics, LLC, acting in its capacity as the Independent Market Monitor (IMM) for PJM Interconnection. The IMM states that FERC must set certain conditions before approving the deal. Read More “PJM Monitor Asks FERC to Impose Conditions on NRG, LS Power Deal”
Gas-fired power plants, both brand new and existing plants, are hot properties these days. We’ve covered several recent sales of existing gas-fired power plants in the Marcellus/Utica region (and beyond). Here’s another one: investment firm Strategic Value Partners, LLC (SVP) announced yesterday that it’s acquiring Red Oak Power, an 831-megawatt natural gas-fired combined-cycle generation facility located in Sayreville, New Jersey. 
In April, MDN told you that EQT Corporation, the second-largest natural gas producer in the country (and the largest producer in the Marcellus/Utica) was buying out and merging in Olympus Energy for $1.8 billion (see 
Infinity Natural Resources (INR), headquartered in Morgantown, WV, focuses 100% on the Marcellus/Utica. The company went public earlier this year with a $265 million ($20/share) initial public offering, giving INR a $1.18 billion market capitalization (see 
Talk about shotgun weddings! WhiteHawk Energy has been smitten with PHX Minerals for two years. WhiteHawk repeatedly proposed marriage (M&A), yet PHX repeatedly gave WhiteHawk the cold shoulder (
This is an unfortunate part of mergers and acquisitions. The Houston Chronicle is reporting that a WARN notice (Worker Adjustment and Retraining Notification) filed by Encino Energy indicates that 121 Encino workers will be laid off on or around August 17. No reason is given, however, EOG Resources is in the process of buying out and merging in Encino’s Ohio Utica assets (see 
In February, MDN brought you the rumor that Canadian pension fund CPP Investments, the majority owner of Encino Acquisition Partners (aka Encino Energy), was considering either a sale of the company or possibly an initial public offering (see 
Gas-fired power plants in the Marcellus/Utica region (and beyond) continue to change hands at a dizzying pace. Last week, MDN brought you the news that NRG Energy agreed 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 
Investment firm ArcLight Capital Partners, LLC, announced it has acquired an additional 25% interest in Natural Gas Pipeline Company of America (NGPL). As a result of the transaction, ArcLight will become the largest owner of NGPL with a 62.5% economic ownership interest, alongside partner Kinder Morgan, Inc., which continues to own a 37.5% economic interest and operates the pipeline. NGPL is the largest transporter of natural gas into the Chicago-area market, as well as one of the largest interstate pipeline systems in the country. It is also a major natural gas transporter to large LNG export facilities and other markets on the Texas and Louisiana Gulf Coast. Most importantly, Marcellus/Utica molecules flow into NGPL. 
ArcLight Capital Partners, an infrastructure investment firm focused on energy and related infrastructure, announced it is buying out the ownership interests of Osaka Gas USA Corporation and Kyuden International Americas Inc. (both Japanese companies) in Kleen Energy Systems, LLC. Kleen Energy owns Kleen Power, a 620 megawatt (MW) natural gas-fired power plant in Middletown, Connecticut. The terms of the transaction were not disclosed.