The energy company will supervise construction of the four combustion turbine units which together could produce 873MW of electricity.
Fund for the construction will be provided by AMP, which will own 75% of the generation output upon completion. FirstEnergy, however, will fund and own the remaining 25% of the output in 2016.
FirstEnergy executive vice president and CFO Mark T Clark said the latest project would cut down the firm’s estimated transmission spending for projects related to plant deactivations by about $200m through 2016.
"Our estimated transmission spend could then be in the $500m to $700m range, with approximately $150m of that total to be incurred in 2013," Clark added.
The facility, whose construction would start in the latter half of 2014 and take about 15 – 20 months to complete, is expected to be operational in early 2016.
The proposed project is subject to regulatory approval.
