NRG Energy, a leader among independent power producers in renewable energy, signed an agreement to purchase Green Mountain Energy Company for $350 million, pending regulatory approval.
Since the company’s inception over 13 years ago, Green Mountain has grown to become the nation’s leading competitive retail provider of cleaner energy, with an array of innovative products and best in class customer service. This success has been made possible by our customers’ dedication and support of renewable energy. The purchase will be seamless for our customers, and they will continue to make a difference for the environment with cleaner energy.
“A permanent and fast-growing portion of the American population is seeking to live sustainably across all key phases of their lifestyle, including the energy they use in their homes, at work and in their personal transportation. Green Mountain understands that customer base and serves it better than any other retail energy provider,” said David Crane, NRG President and Chief Executive Officer. “Increasingly NRG, with our expanding portfolio of wind, solar and biomass initiatives, working with and through Green Mountain, is poised to become the clean energy provider of choice for Americans who want to make a difference for the environment.”
Aligning Green Mountain’s green retail franchise with NRG’s growing portfolio of renewable power assets and development pipeline creates the foundation for what will be the preeminent platform of clean energy solutions in Texas, New York and ultimately, other core markets served by Green Mountain and NRG. Green Mountain will be run as a standalone business within NRG. This acquisition, with an anticipated annual EBITDA contribution of $70 million, is immediately accretive to EBITDA and free cash flow. NRG anticipates funding the transaction with cash on hand upon transaction close, which is expected by mid-November.
“Our acquisition by NRG strengthens Green Mountain’s ability to provide the clean energy products that our customers value, while allowing us to reach new markets and offer greater consumer choice—all while preserving our founding ideals,” said Paul Thomas, Green Mountain President and Chief Executive Officer. “Our customers will continue to be Green Mountain customers.”
Green Mountain ranked highest in J.D. Power and Associates 2009 Texas Business Retail Electric Provider Satisfaction Study. Austin-based Green Mountain has residential and commercial customers primarily in Texas and the New York metro region. Green Mountain also delivers green products and services to select utilities, including Portland General Electric—ranked as the number one green utility program by the Department of Energy’s National Renewable Energy Laboratory— as well as providers in New York and New Jersey.
What renewable assets does NRG own?
- Four wind farms in west Texas, totaling 446 MW generation capacity
- An offshore wind development company, NRG Bluewater Wind
- The largest photovoltaic solar farm in California, the 21 MW Blythe facility, and recently acquired a portfolio of solar projects in the Southwest—bringing NRG’s total solar capacity under development to 1,150 MW.
- NRG is developing biomass projects in Louisiana and Connecticut