Entergy enters agreement to buy plant for $206M
JACKSON — Entergy Mississippi Inc. announced it is formalizing its plans to buy the Hinds Energy Facility. Located in Jackson, the plant is a 450-megawatt, combined-cycle natural gas turbine unit owned by KGen Power Corporation.
Entergy Mississippi entered into a purchase agreement to buy the plant for $206 million, pending regulatory approval. According to the utility, that amount is much less than the cost to construct a comparable facility. The purchase also eliminates the risk of building a new plant and provides significant cost savings for customers.
The plant uses advanced technology known as combined cycle gas turbine. CCGT technology uses natural gas and its steam byproduct to produce electricity.
“Acquiring this plant will let us continue updating our generation plants to more modern and efficient facilities and will allow us to retire old power plants,” said Darron Case, manager of business and energy management for Entergy Mississippi “It also helps us meet a growing demand at the most economic market price for our customers.”
The planned acquisition of the plant was announced earlier this year in Entergy Corporation’s first-quarter earnings release and first-quarter 2011 Form 10-Q, filed with the Securities and Exchange Commission. Shareholders for KGen approved the sale in June, leading Entergy Mississippi to announce its plans to customers.
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