In part of a $1.36 billion deal, NRG Energy purchased a total of 3,884 megawatts of power in a deal that includes the Morro Bay Power Plant.
The deal was announced on Aug. 13, but is still pending approval by the Federal Energy Regulatory Commission and California Public Utilities Commission. If it goes through, NRG will acquire six power plants in California, Maine, and Texas.
The Morro Bay Power Plant has a capacity of 650 megawatts, but has recently been reserved as a “peaker plant,” used mostly to fill high power demands during the hot summer and cold winter months.
New state regulations on water-cooling systems, however, could render the plant unprofitable. In previous interviews with New Times, representatives from Dynegy, the current plant operator, noted that the retrofits required to comply with state rules could be overly expensive and force the company to close the plant.
NRG could not be reached for comment.