|Table 1: Adjusted EBITDA|
|($ in millions)||2016-2018 Average|
|Income before Income Taxes||$ (2.7)|
|Depreciation and Amortization||13.2|
|Adjusted EBITDA||$ 10.5|
As part of its asset rebalancing program, NRG Energy, Inc. (NYSE:NRG) has agreed to sell two of its generating stations: the 525 MW Seward power plant in New Florence, Pennsylvania and the 352 MW Shelby County power plant in Neoga, Illinois. "NRG is focused on maintaining a robust presence and balance through conventional generation assets that complement each other in respect to geography, technology and smart fuel diversity," said David Crane, CEO NRG. "By streamlining our fleet, we can create additional value for our shareholders and meet the needs of our customers with reliable, efficient and economic power. This is part of our ongoing and deliberate strategy of portfolio optimization." The Seward facility, which is located in the PJM Interconnection, is being acquired by Seward Generation, LLC, a Robindale Energy Services, Inc. company. As part of the sale agreement, NRG Energy Services will provide operations and maintenance services to the Seward plant on behalf of Robindale Energy using the current NRG workforce. The Shelby County facility, which is located in the MISO Interconnection, is being acquired by an affiliate of Rockland Capital, LLC. The station is a 352 MW natural gas-fueled, simple-cycle combustion turbine peaking plant with eight General Electric LM6000 aero-derivative combustion units. "Operating a diverse generation fleet is a key component of NRG's continued success in every region in which we operate," said Mauricio Gutierrez, COO NRG. "As part of our asset optimization initiative, we've identified a few specific facilities that would be better suited in other hands in markets where we can transact at good value while avoiding future capital expenditures." The aggregate purchase price for the two generation facilities, both of which are owned by GenOn Energy Inc, an excluded project subsidiary of NRG, is approximately $138 million comprised of cash and other consideration. Together, these assets were projected to average $10.5 million of Adjusted EBITDA annually over the next 3 years and require approximately $17 million in maintenance capital expenditures over the same period 1. The transactions are expected to close in the first quarter of 2016, subject to regulatory approvals, including the Federal Energy Regulatory Commission.
About NRG NRG is leading a customer-driven change in the U.S. energy industry by delivering cleaner and smarter energy choices, while building on the strength of the nation's largest and most diverse competitive power portfolio. A Fortune 200 company, we create value through reliable and efficient conventional generation while driving innovation in solar and renewable power, electric vehicle ecosystems, carbon capture technology and customer-centric energy solutions. Our retail electricity providers serve almost 3 million residential and commercial customers throughout the country. More information is available at www.nrg.com. Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy. NRG Safe Harbor Disclosure This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions and include NRG's expectations regarding asset sales and forward-looking statements typically can be identified by the use of words such as "will," "expect," "believe," and similar terms. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, hazards customary in the power industry, failure of counterparties to perform under contracts and our ability to receive regulatory approvals. NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause NRG's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the Securities and Exchange Commission at www.sec.gov. 1 Based on market information as of NRG Energy's 3rd Quarter 2015 earnings call on November 4, 2015