FirstEnergy Enters into Definitive Agreement on Sale of Fremont Energy Center
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AKRON, Ohio, March 14, 2011 - FirstEnergy Corp. (NYSE: FE) today entered into a definitive agreement to sell the Fremont Energy Center in Fremont, Ohio, to American Municipal Power, Inc. (AMP). Under terms of the agreement, the facility would be purchased by AMP for approximately $485 million, based on 685 megawatts (MW) of output. The transaction would close on or about July 1, 2011. The companies signed a Memorandum of Understanding (MOU) for the transaction in February 2011.
The Fremont Energy Center, a natural gas combined cycle generation plant owned by FirstEnergy subsidiary, FirstEnergy Generation Corp., is currently under construction and scheduled to be complete in 2011. The plant includes two natural gas turbines and a steam turbine capable of producing 544 MW of load-following capacity and 163 MW of peaking capacity.
The purchase price would be incrementally increased, not to exceed $16 million, to reflect additional output and transmission export capacity up to its nameplate capacity of 707 MW. In addition, AMP would reimburse FirstEnergy for construction costs incurred between February 1, 2011, and the closing date, if the transaction is completed. These costs would not exceed $25.3 million.
FirstEnergy acquired the partially complete plant in January 2008 from Calpine Corporation in that company's bankruptcy proceeding. The sale of Fremont to AMP is consistent with FirstEnergy's current efforts to divest non-strategic assets and use the proceeds to provide the company with additional financial strength and flexibility.
FirstEnergy is a diversified energy company dedicated to safety, reliability and operational excellence. Its ten electric distribution companies comprise the nation's largest investor-owned electric system. Its diverse generating fleet features non-emitting nuclear, scrubbed baseload coal, natural gas, and pumped-storage hydro and other renewables, and has a total generating capacity of approximately 24,000 megawatts.
SOURCE FirstEnergy Corp.
CONTACT: Media, Ellen Raines, +1-330-384-5808, or Investor, Ron Seeholzer, +1-330-384-5415
Web Site: www.firstenergycorp.com
