NEW ORLEANS (AP) - Three Entergy Corp. subsidiaries have acquired the natural gas-powered Union Power Station near El Dorado, Arkansas.
Entergy Arkansas Inc., Entergy Louisiana LLC, and Entergy New Orleans Inc., closed their purchase of the 1,980-megawatt plant’s four units on Thursday at a cost of $237 million per unit, subject to adjustments.
“This is approximately half the cost to build a comparable new combined-cycle gas turbine facility,” company spokesman Mike Burns said. Combined-cycle units use two sources of energy - combustion and steam turbines - to convert fuel to electricity.
Entergy Arkansas and Entergy New Orleans each acquired one unit and Entergy Louisiana acquired two units.
“Entergy Louisiana’s addition of two units of the Union Power Station is a major step toward providing additional efficient, clean energy resources for our new and existing customers and modernizing the company’s power generation fleet,” Burns said. “We estimate the two units will provide more than $240 million in net benefits for Louisiana customers over the remaining life of the units. The first year fuel savings are expected to be $55 million.”
In December 2014, Entergy 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.
Entergy said 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, each rated at 495 megawatts.
Entergy delivers electricity to 2.8 million customers in Arkansas, Louisiana, Mississippi and Texas.
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