Canal plant owner to merge
SANDWICH — GenOn Energy, which owns the power plant on the Cape Cod Canal, recently announced plans to merge with a New Jersey energy company.
GenOn and and NRG Energy signed a "definitive agreement" to merge, they announced, with the name remaining NRE Energy.
GenOn formed in 2010 when Houston-based RRI Energy and Mirant Corp. merged. It remains based in Texas.
Its Massachusetts properties include the canal plant, which has a capacity of 1,126 megawatts; back-up diesel generating facilities in West Tisbury and Oak Bluffs; and Kendall Cogeneration Station in Cambridge, which has a 256-megawatt capacity.
Selectman Frank Pannorfi said the board was briefed on the merger by a GenOn official Thursday night.
"My initial reaction was, 'Gee you have big-time organization, major players nationally in the energy generation business and unless you're buying for tax write-off purposes, you may be thinking about a green energy development — gas or hydroelectric, who knows?" Pannorfi said. "I can't wait until (the merger) develops a little more."
The merger is expected to close within the first three months of next year, according to the companies.
It will have to be approved by several groups, including the Federal Energy Regulatory Commission and shareholders of both companies.
GenOn spokesman Chip Little said the Sandwich facility will continue as a power plant. An NRG spokesperson did not return a call seeking comment.
The canal plant, under an agreement with the town, agreed in 2005 to pay $2.4 million annually in taxes until 2013.
Doug Lapp, assistant town manager for Sandwich, said he doesn't foresee any problems getting a new contract signed between the plant and the town.
"That is not an issue," he said.
NRE Energy will keep both existing headquarters — in Princeton, N.J., and Houston, Texas, according to the companies.
Staff writer George Brennan contributed to this report.
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