FirstEnergy Enters Agreement to Sell Yards Creek Hydro Plant
April 10, 2020
FirstEnergy subsidiary Jersey Central Power & Light (JCP&L) has entered into an agreement to sell its 50% interest in the 420-megawatt Yards Creek pumped-storage hydro plant, located in Blairstown, N.J. JCP&L operates the plant, and its portion of the facility is fully regulated.
Under the terms of the agreement, JCP&L would sell its interest to a subsidiary of New York-based LS Power Equity Partners III, LP (LS Power). The 10 FirstEnergy employees at Yards Creek will be offered employment with the new owner.
The transaction is subject to approval by the Federal Energy Regulatory Commission, the New Jersey Board of Public Utilities and other agencies. The sale is expected to be completed in the first half of 2021.
LS Power recently reached an agreement with PSEG Fossil LLC to purchase the other 50% interest in the plant. PSEG’s interest is unregulated.
Upon completion of the sale, FirstEnergy’s subsidiaries will control 3,560 megawatts of regulated scrubbed coal and hydro facilities in West Virginia and Virginia.
“This agreement is the result of a unique circumstance, with a buyer approaching us with an offer that after evaluation was determined to be in the best financial interests of our customers and our company,” said Dan Rossero, vice president, FE Fleet Operations. “It in no way reflects on FirstEnergy’s continuing commitment to regulated generation.”
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