Today NRG Energy (NYSE:NRG) announced two separate moves which will have a wide-ranging impact on its business operations.
The company will be acquiring the retail electric business of Dominion Resources (NYSE:D), which services customers in Texas with its Cirro Energy brand, and also across Connecticut, Illinois, Maryland, Massachusetts, New Jersey, New York, Ohio, and Pennsylvania. In total the company will acquire the accounts of more than 600,000 customers.
"We are excited for the opportunity to serve a substantial number of new customers with our leading portfolio of innovative, exclusive retail energy products," noted President, NRG Retail Northeast, Jim Steffes in the company's announcement. "We are working to ensure that when the deal closes, the transition of Dominion customers to NRG is smooth and that it paves the way for our special brand of customized electricity plans and access to emerging energy technology solutions."
NRG says its power plants currently provide about 47,000 megawatts of generation capacity and its retail and thermal subsidiaries serve more than 2 million residential, business, commercial, and industrial customers in 16 states. NRG highlighted that the acquisition of the retail business from Dominion will allow it to continue to add to its retail footprint in the Northeast, while also expanding its "leading retail position" in Texas.
In addition to the acquisition of Dominion Resources' retail business, NRG also announced that a federal bankruptcy court has approved the plan of reorganization for Edison Mission Energy (EME), which will result in the sale of almost all of the assets of EME to NRG energy. As a result of the acquisition, NRG says it will become the largest competitive power company in the U.S., with a generating capacity of 53,600 megawatts.
The acquisition will provide NRG with the portfolio of wind generation power resources of EME, which will combine with NRG's solar portfolio to make it the third-largest U.S.-based renewable energy generation company, NRG said.
Each transaxation is anticipated to close by the end of the first quarter of this year following regulatory approval. The Associated Press reports the Edison Mission Energy purchase price is $2.6 billion for the deal that includes several coal-fired power plants along with wind and natural gas assets in Illinois.
Patrick Morris has no position in any stocks mentioned. The Motley Fool recommends Dominion Resources. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.