Cinergy Corporation has confirmed that its Indiana subsidiary, PSI Energy, has completed the acquisition of the 512-megawatt Wheatland generating facility for approximately $100 million from subsidiaries of Allegheny Energy Inc. Cinergy has also cleared the first hurdle in its buy out by Duke Energy.
Located in Knox County, Indiana, Wheatland has four natural gas-fired simple cycle combustion turbines and is directly connected to the Cinergy transmission system. Its output will be used to bolster the reserve margins on the PSI system.
The companies announced the purchase agreement in May and recently received approvals from the Indiana Utility Regulatory Commission and the Federal Energy Regulatory Commission for the purchase.
The finalization of the deal comes ahead of Allegheny’s expectations at the time of first announcing the sale agreement. The power provider, which acquired the Wheatland asset in 2001, said in May that the sale would be completed in the fourth quarter.
The deal completion comes as Cinergy took a step closer to being acquired itself by Duke Energy. The Federal Trade Commission and US Department of Justice have determined that there are no antitrust issues related to the $9 billion takeover. The companies will now move on to seek approval at state level and from other government agencies including the Federal Energy Regulatory Commission and SEC.