Reliant Energy has reached an agreement to sell its natural gas-fired power plant located near Huntington, West Virginia to Appalachian Power Company, an affiliate of American Electric Power, for $100 million.
The 505-megawatt facility, known as Ceredo, has been producing power for four years since its initiation in June 2004. It is a simple-cycle peaking facility with six combustion turbines. Reliant acquired the plant as part of its acquisition of Orion Power Holdings in February 2002. It is the only plant the company owns in West Virginia.
This agreement is further evidence that we are delivering on our goal to improve the financial flexibility of the company by selling selected assets when we can obtain fair value, said Joel Staff, chairman and CEO, Reliant Energy. Achieving financial flexibility is a key element of our strategy to reposition Reliant Energy for success in the merchant power industry.
The company expects the sale to be completed in late 2005 or early 2006.