NEW ORLEANS — Entergy Corporation has reached an agreement with a subsidiary of NextEra Energy Resources, LLC, to acquire the Rhode Island State Energy Center (RISEC), 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,” said Richard Smith, president of Entergy Wholesale Commodities. “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 entered commercial service in 2002. RISEC is currently working with Siemens to facilitate the up-rate of its combustion turbines, which is scheduled for completion in November 2011 and will increase the facility’s nominal capacity to 583 megawatts. The transaction is contingent upon, among other things, obtaining necessary regulatory approval from the Federal Energy Regulatory Commission and notification of the transaction pursuant to the Hart-Scott-Rodino antitrust law.
Closing is expected to occur in late 2011.
In a separate item, Entergy has purchased approximately 137,000 tons of greenhouse gas reduction credits from New York’s largest non-hazardous solid waste facility.
The credits were generated from the capture and destruction of methane, a byproduct of waste decomposition. Seneca Meadows Inc. owns and operates the waste facility located in Waterloo, N.Y. SMI captures methane emitted from decomposing waste through a collection system that is then sent to a landfill gas-to-energy facility. The landfill manages an average of 6,000 tons of waste per day.
This is Entergy’s second purchase of greenhouse gas reduction credits from SMI in 2011. Entergy’s latest purchase represents the equivalent of removing roughly 137,000 metric tons of carbon dioxide from the atmosphere, or taking more than 24,000 vehicles off the road for one year. The previous purchase, announced in July, was for nearly 35,000 tons.
The greenhouse gas credits were purchased through Entergy’s dedicated Environmental Initiatives Fund and registered through Winrock International’s nonprofit American Carbon Registry, a voluntary offset program with strong environmental integrity standards. Environmental Capital, LLC, a New York-based carbon credit advisory firm, facilitated project development and registration, as well as brokered the transaction.