Entergy Corporation subsidiaries close transaction to buy Union Power Station

Entergy Corporation has announced that its subsidiaries, Entergy Arkansas, Inc., Entergy Louisiana, LLC, and Entergy New Orleans, Inc., have closed their purchase of the 1,980 MW Union Power Station located near El Dorado, Arkansas (USA).

The Union Power Station, which entered commercial service in 2003, is a highly-efficient, natural gas-fired generating facility. The plant consists of four combined-cycle, gas-fired generating units, or CCGTs, each rated at 495 MW.

In December 2014, the company announced an agreement with Union Power Partners, L.P., an independent power producer wholly-owned by Entegra TC LLC, to acquire the units to help meet increasing resource demands in the region and as part of the company’s modernization of its generating fleet.

The plant purchase price is approximately US$948 million ($479/kW), or approximately $237.0 million per unit, subject to adjustments. 

Entergy Arkansas and Entergy New Orleans each acquired one unit and Entergy Louisiana acquired two units.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. The company owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. The firm has annual revenues of approximately US$11.5 billion and more than 13,000 employees.