AES Corp. has reached a preliminary deal to sell its coal-burning power plant in Somerset, Buffalo to a group of its bondholders in a $300 million deal that is part of a bankruptcy filing by the entity that operates six coal-fired generating stations across New York.

According to the Buffalo News, AES acquired the six coal-burning plants from New York State Electric & Gas Corp. in a $950 million deal in 1998. It closed two of the oldest plants — the Jennison and Hickling stations that had a combined capacity of 156 MW — in late 2000.

The Somerset plant is the largest of the New York plants that AES owns. Historically, it has been among the lowest-cost producers of electricity in the state, and the company has made significant investments in the facility, adding scrubbers to reduce nitrogen oxide emissions in 1999 and upgrading its boiler and control system in 2005.

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