ArcLight, GE, GIC to form independent power producer

Monroe, Ga., January 24, 2011 — ArcLight Capital Partners, GE Energy Financial Services, a unit of GE, and the Government of Singapore Investment Corp. Pte Ltd announced they have agreed to become partners in five Georgia natural gas-fired power plants that make up a fully independent power producer.

The GE unit and GIC will each acquire 24.95 percent of the portfolio from an affiliate of ArcLight, now its sole owner. An affiliate of ArcLight will retain 50.10 percent.

Financial details of the transaction were not disclosed. The closing of the transaction remains subject to approval by the Federal Energy Regulatory Commission and Committee on Foreign Investment in the U.S. and is expected to occur toward the end of the first quarter of 2011.

The plants, located throughout Georgia, comprise a combined cycle facility and four single-cycle peaking facilities, each of which is less than 10 years old. Together, they are capable of generating more than 2,500 MW of power, in several cases using GE gas-fired turbines.

All five facilities, critical to the regional power supply and grid stability, are contracted under long-term agreements to investment-grade counterparties and are managed by Consolidated Asset Management Services, an ArcLight affiliate.

The portfolio comprises:

* Monroe — a 320-MW plant in Monroe, 50 miles east of Atlanta

* Walton — a 450-MW plant in Monroe, adjacent to the Monroe plant

* Washington — a 602-MW plant in Linton, 50 miles east of Macon

* Sandersville — a 640-MW plant in Sandersville, seven miles from the Washington plant

* Effingham — a 515-MW plant in Rincon, 20 miles north of Savannah

The portfolio is well positioned to benefit from the macroeconomic recovery and more stringent energy and carbon legislation as well as the boom in production of unconventional natural gas in the U.S.

In addition, the portfolio will support additional infrastructure investment in the region to meet the demand for power and accommodate the power supply reconfiguration expected to unfold over the next decade.

ArcLight has completed several transactions with GE Energy Financial Services, including the GE unit's lead lending of $98 million in senior secured credit facilities for the Sandersville power plant.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs