Entergy Arkansas Inc. has purchased the Hot Spring Energy Facility at Malvern from KGen Hot Spring LLC for approximately $253 million. The company assumed ownership Friday.
In 2011, Entergy announced plans to buy the 620-megawatt, combined-cycle natural gas turbine unit.
“The Hot Spring plant is an environmentally friendly resource and its addition is another important step in preparing Entergy Arkansas for the future by providing low cost, reliable and clean generation to Arkansas,” Hugh McDonald, president and chief executive officer of Entergy Arkansas, said in a news release Friday.
Entergy Arkansas provides electricity to approximately 700,000 customers in 63 counties. The company is a subsidiary of Entergy Corp., an integrated energy company working primarily in electric power production and retail distribution operations.
The Malvern plant that will boost the utility’s generation capacity sits less than a mile from where Arkansas Power and Light (now Entergy) founder Harvey Couch ran the first transmission line between Malvern and Arkadelphia in 1913.
“This land and this community are where the vision to promote the economic development of Arkansas began,” McDonald said. “We are so pleased to have the opportunity to invest in this community with a reliable, low-cost energy resource to serve the future power demand in Arkansas and offer savings for all Entergy Arkansas customers.”