British Gas owner Centrica confirmed plans to sell its gas-fired power stations in Texas for $685 million (£420m) in cash.
Blackstone Group, a global investment and advisory firm, will buy three power plants from Centrica’s North American subsidiary Direct Energy – which the British energy giant bought for £500 million earlier this year.
The units have a combined capacity of 1,295MW and are located in Paris, Bastrop and Mission. Direct Energy will keep the right to buy the power produced by the plants at a certain price for three years.
Badar Khan, President and CEO of Direct Energy said: “This transaction allows us to realise value from our gas-fired fleet while ensuring stability of price and supply in the Texas power market through the call option arrangement.”
The transaction is expected to close in the first quarter of 2014.