GenOn Energy Holdings
| Company type | Public |
|---|---|
| Industry | Energy |
| Predecessor | Southern Energy |
| Founded | April 2, 2001 |
| Defunct | December 2012 |
| Fate | Merged with GenOn Energy; later integrated into NRG Energy |
| Headquarters | Atlanta , United States |
Area served | United States (California, Georgia, Maine, Maryland, Massachusetts, Michigan, New York, Virginia) |
| Products | Electricity generation (power plants) |
| Parent | GenOn Energy (until 2012), then NRG Energy |
GenOn Energy Holdings, which was previously known as Mirant Corporation, operated as a subsidiary under GenOn Energy before becoming integrated into NRG Energy.
Originally, the company was separated from its former parent firm, Southern Company, on April 2, 2001. It subsequently merged with GenOn Energy on December 3, 2010, and later joined NRG Energy in December 2012.
Mirant managed 13 power plants located throughout California, Georgia, Maine, Maryland, Massachusetts, Michigan, New York, and Virginia, boasting an approximate generation capacity of 10,300 MW.
Origins with Southern and subsequent spinoff
Established in 1981 as Southern Electric International (SEI), the entity began as a consulting arm within Southern Company, delivering engineering and technical expertise. Following the deregulation introduced by the 1992 Energy Policy Act, SEI expanded internationally by acquiring interests in various utilities such as Freeport Power (Bahamas), South Western Electricity Board (UK), Consolidated Electric Power Asia (Hong Kong), BEWAG (Germany), EDELNOR (Chile), and Hydroelectrica Alicura (Argentina), thereby extending its footprint across the Caribbean, Asia, South America, and Europe.
Within the United States, SEI partnered with Houston-based Vastar Energy in 1999 to establish Southern Company Energy Marketing, focusing on electricity and natural gas trading. That year also saw acquisitions of power generation assets in New England, New York, and California. Reflecting its broadened market activities, the company rebranded as Southern Energy in 1999 and completed a significant purchase of power facilities from Potomac Electric Power Company (PEPCO) in December 2000.
Following an initial public offering in late 2000, Southern Company fully divested Southern Energy in April 2001, resulting in the creation of Mirant Corporation, which was listed on the New York Stock Exchange under the ticker MIR. Between 2000 and 2003, Mirant pursued growth through acquisitions and new developments of gas-fired plants across Nevada, Texas, Wisconsin, Indiana, Arkansas, Louisiana, Georgia, and Florida.
Bankruptcy proceedings in 2003
In the wake of turmoil within the independent power sector triggered by Enron's collapse, Mirant filed for Chapter 11 bankruptcy protection on July 14, 2003 after months of efforts to restructure its financial obligations.
The bankruptcy case was distinguished by the court's approval of an equity holders' committee—a rare decision indicating the judge's assessment that there was likely residual value for shareholders after reorganization.
Mirant successfully emerged from bankruptcy protection in January 2006 and resumed trading on the New York Stock Exchange under the symbol MIR. Shareholders existing before bankruptcy retained a stake in the reorganized company.
Prior to filing for bankruptcy, Mirant had sought to expand its Potrero generating station but encountered five years of resistance from local community groups. On March 2, 2006, the California Public Utilities Commission denied expansion proposals. Although initially planned for closure in 2007 to allow construction of a new facility, these plans were later revised to focus on upgrading the current plant.
In 2007, Mirant sold off several gas-fired power plants along with international holdings in the Philippines and Caribbean regions.
2010 Merger
Mirant revealed plans on April 11, 2010, to merge with RRI Energy, previously known as Reliant Energy. This merger, finalized on December 3, 2010, resulted in the formation of GenOn Energy.
Operations
- The Morgantown Generating Station located near Morgantown, Maryland was recognized in 2004 by Electric Power & Light magazine as the coal-fired plant with the highest heat-rate efficiency in the United States.
- Mirant’s Mid-Atlantic facilities, including the Dickerson Generating Station near Dickerson, Maryland, have earned certification from the Wildlife Habitat Council (WHC), a national acknowledgment for their initiatives in wildlife habitat preservation such as installing artificial nesting sites and planting native species.
- In 2004, the Canal generating facility in Sandwich, Massachusetts became the first steam-electric plant in Massachusetts to meet the state’s rigorous emission reduction standards.
- The Potrero Generating Station in San Francisco, recognized as one of California’s oldest power plants and originally the site of Pacific Gas and Electric’s first station, has since ceased operations.
Environmental record
According to 2002 statistics from researchers at University of Massachusetts Amherst, Mirant ranked as the 63rd-largest corporate air polluter nationwide, emitting approximately 19 million pounds annually of hazardous substances including sulfuric acid, hydrochloric acid, and chromium compounds.
Chesapeake Climate Action Network blockade of Dickerson Power Plant
On November 10, 2004, members of the Chesapeake Climate Action Network, along with students, farmers, and clergy, staged a protest at Mirant’s coal-fired Dickerson Power Plant in Montgomery County, Maryland. Six protesters were arrested for trespassing while urging Mirant to cease its opposition to pollution control legislation at both state and federal levels.
Tax issues
Mirant operated two power plants in New York’s Hudson Valley region and withheld over $180 million in property taxes during disputes with the Towns of Stony Point and Haverstraw as well as the North Rockland School District. Claiming that assessments were excessive, Mirant utilized bankruptcy provisions to delay payments. This action shifted higher tax burdens onto local residents, increasing their individual costs by an average exceeding $2,000. The inflated assessments stemmed from a strategy employed by Consolidated Edison and Orange and Rockland Utilities—whose facilities Mirant acquired after deregulation—to position plants within this area.
A resolution was reached through a state court settlement in December 2006 that set tax obligations based on lowered assessed values for Mirant’s properties.
Federal Court Cases
In a significant labor-related case, Local 369 of the Utility Workers Union of America successfully upheld an arbitration decision in the U.S. District Court for the District of Massachusetts. The court determined that Mirant did not have just cause to dismiss two employees accused of viewing inappropriate material on company computers. Federal Judge Douglas P. Woodlock denied Mirant’s request to overturn the arbitration ruling, supporting the union’s claim.