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Texas Muni Utilities Seek To Stop Sale Of STP Nuclear Plant Ownership Share Among Retail Supplier Parents
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As previously reported, on May 31, 2023, NRG Energy, Inc. ('NRG'), through Texas Genco GP and Texas Genco LP, (collectively the 'Seller') entered into an Equity Purchase agreement pursuant to which Constellation Energy Generation, LLC ('Constellation') agreed to purchase all of the Seller’s equity interests in NRG South Texas LP, which would have the effect of conveying NRG's 44% equity interest in the South Texas Project Electric Generating Station (STP) to Constellation
NRG said in an 8-K filed today that, "On July 28, 2023, NRG accepted service of a lawsuit filed by the City of San Antonio, Texas, acting by and through the City Public Service Board of San Antonio ('CPS') in the 130th District Court of Matagorda County, Texas (the 'CPS Lawsuit') claiming the existence of a right of first refusal that applies to the transaction contemplated by the Equity Purchase Agreement. On July 31, 2023, CPS and Austin Energy jointly filed a motion with the Nuclear Regulatory Commission ('NRC') seeking to dismiss the pending License Transfer Application ('LTA') between NRG and Constellation, or in the alternative, having the NRC staff to stay their review of the LTA pending resolution of the CPS lawsuit. Also on July 31, 2023, Austin Energy intervened in the CPS Lawsuit claiming a similar right of first refusal."
NRG said in an 8-K filed today that, "NRG believes the claims set forth by CPS and Austin Energy both in the lawsuit and the NRC motion are without merit and intends to vigorously defend against them. NRG also intends to pursue other legal rights and remedies against CPS and Austin Energy. NRG expects to complete the transaction with Constellation by the end of the year."
Constellation said in an 8-K that, "NRG has informed us that it believes the CPS Lawsuit and Austin’s claims are meritless and will seek their dismissal. Under Section 3.4 of the Equity Purchase Agreement, Seller made a representation that no right of first refusal applied to the equity in NRG South Texas. Based on Seller’s representation, Constellation is proceeding with efforts to close its transaction with Seller this year."
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August 1, 2023
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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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