Entergy to acquire Rhode Island State Energy Center

Entergy says it has reached an agreement with a subsidiary of NextEra Energy Resources to acquire the Rhode Island State Energy Center, a 550-megawatt power plant located in Johnston, R.I., for approximately $346 million, subject to closing adjustments. “The acquisition presents an opportunity to create value by acquiring modern, efficient generation at approximately half the new build cost and is in line with our disciplined, market point of view for capital deployment,” says Richard Smith, president of Entergy Wholesale Commodities, in a statement released this morning. “This asset enhances the value of our existing portfolio through the addition of generation in the New England market that is well positioned to benefit from expected market recovery.” The facility is a nominal 550-megawatt Siemens natural gas-fired combined-cycle generating plant that’s been in commercial service since 2002. RISEC is currently working with Siemens to increase the rate of its combustion turbines, an upgrade scheduled for completion in November that will increase the facility’s nominal capacity to 583 megawatts. Entergy’s deal with RISEC still needs regulatory approval from the Federal Energy Regulatory Commission, among other requirements, and closing is expected to occur late this year.