FirstEnergy Corp. entered into a revised agreement to sell 1,615 megawatts (MW) of natural gas and hydroelectric generation assets in Pennsylvania and Virginia to a unit of LS Power Equity Partners III, LP.

The assets will be sold for an all-cash price of $825 million. The sale, which was first announced in January, is part of FirstEnergy's effort to move to a fully regulated company and exit from commodity-exposed generation.

The sale includes six power stations owned by FirstEnergy subsidiaries Allegheny Energy Supply Co., LLC, and Allegheny Generating Co. The sale includes:

  • Springdale Generating Facility Units 1-5 (638 MW natural gas) in Springdale Township, Penn.
  • Chambersburg Generating Facility Units 12-13 (88 MW natural gas) in Guildford Township, Penn.
  • Gans Generating Facility Units 8-9 (88 MW natural gas) in Springhill Township, Penn.
  • Hunlock Creek (45 MW natural gas) in Hunlock Creek, Penn.
  • A portion of Allegheny Generating Co.'s ownership interest in the Bath County Hydro station (713 MW pumped-storage hydro) in Warm Springs, Va., which represents Allegheny Energy Supply's competitive interest.
  • Allegheny Energy Supply's indirect interest in a joint venture that owns the Buchanan Generating Facility (43 MW gas) in Oakwood, Va. This facility was not included in the original purchase agreement.

The transaction involving the Springdale, Chambersburg, Gans and Hunlock power stations is expected to close in the fourth quarter of 2017. The sale of Bath and Buchanan is expected to close in the first quarter of 2018.

Proceeds from the sales will be invested in FirstEnergy's unregulated money pool and may be used for the repayment of debt and other corporate purposes.

When the sale is complete, FirstEnergy will own or control generating capacity totaling approximately 15,337 MW from nuclear, coal, gas, hydro, wind and solar facilities across Ohio, Pennsylvania, West Virginia, New Jersey, Virginia and Illinois.