Texas’ biggest power generator Vistra Corp. is acquiring Energy Harbor Corp. in a deal valued at $3.43 billion to create one of the largest clean energy businesses in the country.
The deal, announced Monday, will combine Irving-based Vistra’s nuclear and retail businesses with Energy Harbor’s nuclear and retail assets under a new subsidiary holding company, Vistra Vision. The new company also will include Vistra’s renewables and storage projects.
The deal is expected to close in the second half of 2023. Energy Harbor shareholders will receive a 15% equity stake in Vistra Vision, which will have about five million U.S. retail customers.
Vistra’s stock was trading up nearly 15% following the announcement.
Energy Harbor is the second largest owner of merchant nuclear power in the U.S., while Vistra is the fourth largest.
“As our country goes through this energy transition to cleaner sources of electricity, we cannot lose sight of reliability and that’s what is exciting about nuclear power,” said Vistra president Jim Burke in a presentation on the deal on Monday morning.
Energy Harbor emerged from the bankruptcy reorganization of the one-time subsidiary of Ohio’s FirstEnergy. Its two nuclear plants in Ohio – Davis-Besse and Perry – were the subject of ratepayer bailout legislation that led to an FBI corruption probe of that state’s former House speaker. Ohio lawmakers have since repealed the $1 billion bailout.
The two Ohio nuclear plants as well as the Beaver Valley nuclear plant in Pennsylvania will become part of Vistra’s new subsidiary. Energy Harbor’s two coal plants along the Ohio River are not part of the deal.
Vistra recently filed with the U.S. Nuclear Regulatory Commission to extend operations at Comanche Peak nuclear power plant in Glen Rose, Texas, through 2053, an additional 20 years beyond its original licenses.
The two-unit plant in Somervell County can produce enough electricity to power about 1.2 million Texas homes in normal conditions and 480,000 homes in periods of peak demand. The current licenses for units 1 and 2 extend through 2030 and 2033, respectively. The company wants those renewed through 2050 and 2053.
Nuclear plants are known for their ability to produce power around the clock. Comanche Peak is one of two operating nuclear plants in the state, which combined supply about 10% of Texas’ electricity needs. The South Texas Project near Bay City is the other nuclear plant.
Comanche Peak, which began operations in 1990, is about 60 miles southwest of Dallas.
The deal for Energy Harbor comes after Vistra released its 2022 full-year results last week. It reported a net loss of $1.2 billion and revenue of $13.7 billion.
