Akron, Ohio, February 10, 2011 – FirstEnergy Corp. announced today that it has entered into a non-binding memorandum of understanding for the sale of its Fremont Energy Center in Fremont, Ohio, to American Municipal Power.
The MOU provides, among other things, for the parties to engage in exclusive negotiations toward AMP executing a definitive agreement by March 11, 2011, to purchase the facility on or about July 1, 2011.
The Fremont Energy Center, a 707-MW natural gas combined cycle generation plant owned by FirstEnergy unit, FirstEnergy Generation Corp., is currently under construction and scheduled to be complete in 2011.
The plant includes two natural gas turbines and a steam turbine capable of producing 544 MW of load following capacity and 163 MW of peaking capacity.
FirstEnergy acquired the partially complete plant in January 2008 from Calpine Corp. in that company’s bankruptcy proceeding. The sale of Fremont to AMP is consistent with FirstEnergy’s current efforts to divest non-strategic assets and use the proceeds to provide the company with additional financial strength and flexibility.
FirstEnergy is a diversified energy company headquartered in Akron, Ohio. Its subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services.
Its seven electric utility operating companies comprise the nation’s fifth largest investor-owned electric system, based on 4.5 million customers served within a 36,100-square-mile area of Ohio, Pennsylvania and New Jersey; and its subsidiaries control about 13,500 MW of capacity.