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NRG in $350m deal to buy renewable power retailer

NRG is keen to get its hands on Green Mountain's renewable energy portfolio

New Jersey-based power company NRG Energy, Inc., has agreed a deal to acquire the Green Mountain Energy Company, the retail provider of renewable electricity.

The company said the definitive agreement, for $350 million in cash, would bolster NRG’s portfolio of renewable power assets, particularly in Texas and New York, seen as core markets for both companies.

The acquisition is expected to close by mid-November.

Green Mountain, which started out life in Vermont in 1997, before redeploying its HQ to Austin, Texas, in September 2000, will be run as a standalone business within NRG, the companies said yesterday.

One of the company’s plum contracts is acting as renewable power marketing agent for Oregon utility Portland General Electric, a role it has been carrying out since 2001. PGE was named the top utility in the country for renewable electricity customers earlier this year.

David Crane, NRG President and Chief Executive Officer, said that through Green Mountain, his company was “poised” to become the clean energy provider of choice for Americans who want to make a difference for the environment.

Mr Crane said: “A permanent and fast-growing portion of the American population is seeking to live sustainably across all key phases of their lifestyle, including the energy they use in their homes, at work and in their personal transportation. Green Mountain understands that customer base and serves it better than any other retail energy provider.”

Approval

The Green Mountain acquisition does still require the approval of regulators including the Department of Justice and the Federal Energy Regulatory Commission as well as other regulatory notices.

Paul Thomas, Green Mountain President and Chief Executive Officer, said: “Our acquisition by NRG strengthens Green Mountain’s ability to provide the clean energy products that our customers value, while allowing us to reach new markets and offer greater consumer choice — all while preserving our founding ideals.

“Our customers will continue to be Green Mountain customers,” added Mr Thomas.