The facility, called the Fremont Energy Center, is currently under construction and scheduled to be completed in 2011.
The power plant includes two natural gas turbines and a steam turbine, and has a load-following capacity of 544MW and peaking capacity of 163MW.
Under the deal, AMP will acquire the facility for approximately $485m, based on 685MW of capacity.
The purchase price will be incrementally increased by up to $16m to reflect the plant’s additional capacity up to 707MW.
FirstEnergy said that the sale of the Fremont plant is consistent with its current efforts to divest non-strategic assets and use the proceeds to reduce debt and improve financial flexibility.
