Entergy Corp.’s wholesale power generation division, Entergy Wholesale Commodities, has entered into an agreement to sell its 583 MW Rhode Island State Energy Center, located in Johnston, R.I., to Carlyle Power Partners.
The facility is a natural gas-fired, combined-cycle generating plant that entered commercial service in 2002.
The base sales price is about $490 million, subject to closing adjustments. Entergy Wholesale Commodities purchased the plant for $346 million in December 2011. Entergy expects to record a net gain of about $0.50 per share assuming closing of the sale occurs in the fourth quarter 2015, subject to working capital and other adjustments. The gain on sale will be classified as a special item, and as such, excluded from operational earnings.
“Our strategy for EWC is focused on being disciplined about reducing risk and freeing up financial resources for other opportunities,” said Entergy Chairman and CEO Leo Denault. “RISEC has been a very good investment for us, and its sale is consistent with that strategy.”
The transaction is contingent upon, among other things, obtaining necessary regulatory approval from the Federal Energy Regulatory Commission and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Closing is targeted for the end of 2015.