Photo: Moment RF
NRG has made a major purchase. They recently acquired 18 different power plants in a 12 billion dollar deal that they say will double their generation capacity. So what does this mean for NRG's Houston area consumers?
Unfortunately not very much. Turns out this is really just a money making move for NRG. University of Houston Energy Fellow Ed Hirs told KTRH, "It's a consolidating play. They're buying these power plants for 60-75 cents on the dollar of what it would cost to build them new."
He went on to explain that while NRG might be able to generate more power, the power available to all of ERCOT isn't going to change here. He said, "These plants are already in ERCOT. The operator is a well known New York hedge fund, NRG is going to step into their shoes, and profit from the lack of positive action from the Texas Legislature."
Hirs went on to point out that we are still years away from ERCOT catching up to Texas' rapidly growing energy demands, saying, "We're five years out from adding any new natural gas plants to the grid. Across the nation, other grids are needing to build up also."
He went on to blast Texas leaders, and the legislature, for failing to make any major positive moves on Texas energy needs.