NRG Energy Buys Ohio Plants For $1.5 Billion

MINNEAPOLIS (AP) - NRG Energy Inc. has agreed to buy four coal-fueled generating stations from FirstEnergy Corp. for $1.3 billion.

The plants, located along Lake Erie near Cleveland and Toledo, generate more than 2,500 megawatts. As part of the deal, Akron-based FirstEnergy agreed to buy power from the four plants through 2005.

NRG, based in Minneapolis, anticipates that the acquisition will add to its earnings upon closing, which is expected in the second quarter of 2002.

NRG will pay $1.36 billion in cash and assume $145 million in debt associated with the plants.

FirstEnergy president Anthony Alexander says that the deal allows the company to concentrate on its coal-fired generation plants along the Ohio River and other facilities.

(Copyright 2001 by The Associated Press. All Rights Reserved.)