HOUSTON, August 11, 2005 (PRNewswire-FirstCall) — Reliant Energy has reached an agreement to sell its 505-megawatt, natural gas-fired power plant located near Huntington, West Virginia to Appalachian Power Company, an affiliate of American Electric Power Co., for $100 million.
The facility, known as Ceredo, was brought online in June 2001. It is a simple-cycle peaking facility with six combustion turbines. Reliant acquired the plant as part of its acquisition of Orion Power Holdings in February 2002. It is the only plant the company owns in West Virginia.
“This agreement is further evidence that we are delivering on our goal to improve the financial flexibility of the company by selling selected assets when we can obtain fair value,” said Joel Staff, chairman and chief executive officer, Reliant Energy. “Achieving financial flexibility is a key element of our strategy to reposition Reliant Energy for success in the merchant power industry.”
The company expects the sale to be completed in late 2005 or early 2006, subject to regulatory approvals.
About Reliant Energy
Reliant Energy, Inc. based in Houston, Texas, provides electricity and energy services to retail and wholesale customers in the U.S. The company provides energy products and services to approximately 1.9 million electricity customers, ranging from residences and small businesses to large commercial, industrial, governmental and institutional customers, primarily in Texas.
Reliant also serves commercial, industrial, and governmental customers in the PJM (Pennsylvania, New Jersey, Maryland) market. The company is one of the largest independent power producers in the nation with approximately 19,000 megawatts of power generation capacity in operation or under contract across the U.S. These strategically located generating assets utilize natural gas, wind, fuel oil and coal.