Summary
FirstEnergy Corp. announced on September 4, 2013, through an 8-K filing, that its subsidiaries have applied to the Federal Energy Regulatory Commission (FERC) for authorization to sell eleven hydroelectric power stations to Harbor Hydro Holdings, LLC, a subsidiary of LS Power Equity Partners II, LP. The sale, which is expected to close in the fourth quarter of 2013 pending regulatory approvals, includes 527 megawatts (MW) of generation capacity, representing less than 3% of FirstEnergy's total generation fleet output. This divestiture is part of a strategic move to streamline its portfolio and focus on core operations. The transaction is subject to customary closing conditions, including approvals from FERC and the Virginia State Corporation Commission, as well as the expiration of the Hart-Scott-Rodino waiting period. The sale will include various hydroelectric facilities located in Pennsylvania, Virginia, and West Virginia. Notably, the 35 employees at these power stations are expected to be retained by the new owner. FirstEnergy will continue to own significant stakes in other pumped-storage hydroelectric facilities.
Key Highlights
- 1FirstEnergy Corp. is divesting eleven hydroelectric power stations to Harbor Hydro Holdings, LLC.
- 2The transaction is expected to close in Q4 2013, subject to regulatory approvals.
- 3The sale involves 527 MW of generation capacity, less than 3% of FirstEnergy's total output.
- 4Key regulatory approvals required include FERC and the Virginia State Corporation Commission.
- 5The sale includes facilities across Pennsylvania, Virginia, and West Virginia.
- 6Approximately 35 employees are expected to be retained by the buyer.
- 7FirstEnergy will retain ownership of portions of the Bath County and Yards Creek Pumped-Storage Hydro facilities.