Entergy Corporation has signed an agreement with a subsidiary of NextEra Energy Resources to buy the 550MW Rhode Island State Energy Center for about $346m.
Located in Johnston, Rhode Island, the natural gas-fired combined-cycle facility entered commercial service in 2002.
Work is under way to increase the power plant's nominal capacity to 583MW and this upgrade is scheduled for completion in November 2011.
Entergy Wholesale Commodities president Richard Smith said this asset enhances the value of Entergy's existing portfolio through the addition of generation in the New England market that is well positioned to benefit from expected market recovery.
The transaction is expected to close in late 2011, subject to necessary regulatory approvals.
Entergy is an integrated energy company engaged primarily in electric power production and retail distribution operations.