NRG Sells Assets

Company restructuring moves forward with sale of renewables business

NRG, the power company with dual headquarters in Princeton, N.J., and Houston, Tex., announced specifics of its restructuring plan February 7. The company will sell a number of assets, including sale of its interest in branches NRG Yield and NRG’s Renewables Platform.

NRG and NRG Yield entered into Purchase and Sale Agreements for NRG Yield to purchase NRG’s interest in the following ROFO pipeline assets: 527 MW Carlsbad Energy Center and 154 MW Buckthorn Solar for additional cash proceeds of $407 million, subject to certain adjustments.

The parking lot at NRG’s Princeton, N.J., headquarters is outfitted with solar arrays.—NRG Energy photo

It will also sell its South Central Business, which includes a number of power generation plants, to Pineville, La.-based Cleco Holdings. The restructuring will result in $2.8 billion in cash proceeds, $7 billion of debt removed, and the revision of asset sale cash proceeds target to approximately $3.2 billion, the company said in a February 7 press release.

NRG was formerly the wholesale arm of Xcel until that company’s bankruptcy in 2004 forced it to spinoff.

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