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NRG Energy to buy Energy Plus for $190m

Published: 16:35 16 Aug 2011 BST

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Wholesale power generation company NRG Energy (NYSE:NRG) said it plans to buy Philadelphia-based retail electricity and natural gas provider Energy Plus Holdings for $190 million in cash, in a bid to expand its presence in northeastern US.

"As we launch our retail expansion in the Northeast, Energy Plus adds a highly effective and essentially non-replicable sales chain to our successful retail energy platform," NRG’s CEO, David Crane, said in a statement.

"Energy Plus' direct marketing expertise, exclusive loyalty program partnerships and marketing platform, creates a potent retail combination that is well differentiated from the product and service offerings of our competitors."

The transaction, expected to wrap-up in October, will give NRG Energy access to Energy Plus’ customers in New York, Connecticut, Pennsylvania, New Jersey, Maryland and Illinois.

Privately-held Energy Plus also sells electricity in Texas and natural gas in New York and New Jersey.

The deal requires regulatory approvals from the Justice Department and the Federal Energy Regulatory Commission.

NRG said the power industry is entering “an era of greater customer choice” in the type of energy people use and who they buy energy from, positioning it to reap benefits from its clean energy services.

"We believe NRG is the most visionary company in our industry, and are thrilled to become part of the NRG family," said Energy Plus CEO, Richard Vague.

Since its inception in 2007, Energy Plus has been one of the fastest-growing energy companies in the United States, driven by its rewards programs offered through the its growing network of 100 industry partners and associations.

Princeton, New Jersey-based NRG owns and operates one of the country’s largest and most diverse power generation portfolios. Its power plants supply 25,000 megawatts of generation capacity, while its retail business serves nearly 1.9 million residential, commercial and industrial customers.

NRG’s shares fell 25 cents, or 1.09%, to $22.62 Tuesday morning on the New York Stock Exchange. The company has a 52-week high of $25.66, while its 52-week trading low is $18.22.

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