NRG Energy's bankrupt subsidiary GenOn will sell two units of the Canal Generating Plant in Sandwich, Massachusetts (United States) to Stonepeak Infrastructure Partners’ subsidiary Stonepeak Kestrel for a total consideration of US$390m. The facility has been operational since 1968 and runs on natural gas and petroleum. The transaction is subject to regulatory approval and is expected to be closed in the fourth quarter of 2018.
The third unit will also be sold to a Stonepeak affiliate in a separate deal. Earlier in March 2018, GenOn agreed to sell the 810 MW Hunterstown CCGT power plant in Gettysburg (Pennsylvania) to Platinum Equity for US$520m.
GenOn filed for bankruptcy protection in June 2017 and will be restructured as a standalone company. It has been struggling with low electricity prices on the wholesale markets and suffering from reduced margins as electricity prices have sunk over the last few years. The bankruptcy process will transfer the ownership of GenOn and of its 32 power plants (around 15.4 GW, 2/3 of which from gas) in eight states to senior noteholders. NRG Energy acquired GenOn in December 2012 for US$1.7bn, creating the largest independent US power producer, with about 47 GW of both conventional and renewable generation capacities, that could power about 37 million American homes.
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