NRG Energy to sell another power plant

Minnesota-based NRG Energy has agreed the sale of its 1,160 megawatt (MW) generating plant in Minooka, Illinois to an affiliate of asset acquisition company LS Power. NRG has the right to buy back a 40% interest in the project within a 10-year period, for a nominal amount. LS Power will assume $450 million in debt from NRG's consolidated balance sheet, and the NRG will receive $1 million in cash proceeds.

The transaction - which continues the asset-selling trend among US energy companies - is expected to close during the fourth quarter of this year. Given NRG's right to repurchase a 40% interest, the transaction will be treated as a partial sale for accounting purposes. NRG expects to record a non-recurring, non-cash loss in the third quarter of around $22 million as a result of the agreement.

"The sale of Kendall, once completed, will mark another major milestone in our effort to reduce the