Aug. 9, 2002 — FirstEnergy Corp. on Thursday canceled plans to sell four power plants to NRG Energy because it said NRG’s affiliate has breached certain obligations in the agreements.
FirstEnergy also notified NRG and its affiliate that FirstEnergy is reserving the right to pursue legal action against NRG, its affiliate, and its parent Xcel Energy for damages, based on the anticipatory breach of the agreements to acquire the Ohio plants.
FirstEnergy and NRG announced the agreements on November 29, 2001, under which NRG, through an affiliate, would purchase the four predominantly coal- fired power plants located along Lake Erie from subsidiaries of FirstEnergy for $1.5 billion.
FirstEnergy is a registered public utility holding company headquartered in Akron, Ohio. Its electric utility subsidiaries comprise the nation’s fourth largest investor-owned electric system, based on serving 4.3 million customers.
Its subsidiaries and affiliates are involved with the generation, transmission and distribution of electricity; exploration and production of oil and natural gas; transmission and marketing of natural gas; and energy management and other energy-related services.