The Carlyle Group to Acquire Rhode Island State Energy Center

Global alternative asset manager The Carlyle Group has agreed to acquire 100% of the interests in the Rhode Island State Energy Center (RISEC), a 583 MW natural-gas fired power plant located in Johnston, Rhode Island, from subsidiaries of Entergy Corp.

Carlyle agreed to pay US$490 million, inclusive of working capital and subject to certain purchase price adjustments.  Equity capital for the transaction will come from Carlyle Power Partners II L.P and Carlyle Power Opportunities Capital Partners L.P.

RISEC, currently owned by subsidiaries of Entergy Corp., is a 583 MW, natural gas-fired power plant, which began commercial operations in 2002. The plant is located in Johnston, Rhode Island, near some of New England’s largest demand centers. The plant participates in New England’s deregulated wholesale power market.

Matt O’Connor, Carlyle Managing Director and Co-Head of Carlyle Power Partners, said,

“RISEC is among the most efficient combined cycle facilities in New England and is well-positioned to capitalize on strong regional market dynamics. New England represents an attractive market for investment due to its transparency and incentives for reliable generation.  Additionally, the retirement of aging generation in the region is putting a greater emphasis on efficient gas-fired generators, like RISEC, to meet everyday electricity demand.”

The acquisition is being done in conjunction with Carlyle’s portfolio company Cogentrix Energy Power Management, LLC (Cogentrix) and increases the size of Carlyle’s power generation portfolio to 18 power plants totaling more than 4,900 gross MW. The deal is subject to customary closing conditions.