Entergy Mississippi has agreed to acquire Choctaw Energy Facility, an 810MW combined-cycle natural gas power plant in French Camp, Mississippi, from a subsidiary of GenOn Energy, for $314m.
GenOn Energy, in turn is a wholly owned subsidiary of NRG Energy.
Entergy Mississippi said that the acquisition of Choctaw Energy Facility from the NRG subsidiary is part of its efforts to modernize the power grid and preparing itself for the future.
According to Entergy Mississippi, the amount it is spending on Choctaw Energy Facility is considerably less than the cost to construct a comparable facility. It also said that the transaction removes construction time and risks that come with building a new plant while delivering more immediate benefits and savings for its customers.
Entergy Mississippi president and CEO Haley Fisackerly said: “This is a sound investment in our commitment to meet the energy needs of our customers today and in the future.
“This plant modernization will create immediate benefits that include greater reliability, lower emissions and cost savings for our customers.”
Choctaw Energy Facility is equipped with the combined-cycle gas turbine (CCGT) technology, which enables it to use natural gas and its steam byproduct to generate maximum electricity at the lowest cost.
Entergy Mississippi claims that the gas power plant is also environmentally-friendly and furthers its reputation as one of the cleanest utilities in the US.
Entergy Mississippi resource planning and market operations director Darron Case said: “This purchase is a continuation of our efforts to update our generation plants to more modern and efficient facilities, and it replaces power plants that have been recently retired or will soon be retired.
“We have retired approximately 700 megawatts of original, older generation in the past several months. This newer plant also helps us meet a growing need at the most economic market price for our customers.”
Case also said that the purchase of Choctaw Energy Facility will also give scope for the retirement of additional ageing power plants in the near-term.