ArcLight Capital Partners completes acquisition of Power Asset Portfolio from Tenaska
ArcLight Capital Partners has announced that Eastern Generation, a newly formed portfolio company controlled by ArcLight Energy Partners Fund VI, completed a transaction with affiliates of Tenaska Capital Management, whereby Eastern Generation has acquired a natural gas and dual-fuel fired portfolio consisting of seven power generation plants totaling 4.8 GW.
The Eastern Generation portfolio includes:
- Three natural gas and dual-fired generating facilities located in New York within the NYISO Zone J power market (Astoria, a 954 MW facility located in Queens, Gowanus, a 631 MW facility located in Brooklyn and Narrows, a 322 MW facility also located in Brooklyn) and the US Power Generating Company (USPG) asset management and operations platform.
- New Covert, a 1,100 MW highly efficient combined cycle natural gas-fired power generation facility located in Michigan, which is expected to be interconnected to PJM through a dedicated transmission line in June 2016.
- Three natural gas-fired power generation facilities located in the PJM power market (Rolling Hills, a 850 MW facility located in Ohio, Lincoln, a 656 MW facility located in Illinois, and Crete, a 328 MW facility located in Illinois as well)
Dan Revers, Managing Partner of ArcLight, commented:
"The portfolio acquired by Eastern Generation represents an attractive opportunity for ArcLight to benefit from favorable dynamics driven in part by the retirement and displacement of coal-fired and nuclear assets in the PJM market as well as an opportunity to re-enter New York City's Zone J power market. We are pleased to work with the strong management team at USPG, led by CEO Mark Sudbey, to optimize the entire Eastern Generation portfolio and Consolidated Asset Management Services providing operational expertise to the non-New York power generation facilities."
