Oglethorpe Power buys combined cycle units

Tucker, Ga., April 8, 2011 Oglethorpe Power Corp. completed the purchase of two natural gas-fired, combined cycle generating units in Murray County, Ga. with the acquisition of KGen Murray I and II, a unit of KGen Power Corp.

The purchase price was about $529 million, including working capital and other closing adjustments.

The two Murray units represent an aggregate summer planning reserve generating capacity of about 1,220 MW. This brings Oglethorpe Power's total owned generating capacity to about 7,048 MW.

The Murray acquisition also includes an existing power purchase and sale agreement with Georgia Power Co. for the entire output of Murray I through May 31, 2012. Initially, both units are planned to be operated independently of the other generating facilities owned and operated by Oglethorpe Power but will be integrated into the system as needed.

Oglethorpe Power first disclosed that it was negotiating to purchase some then-unnamed natural gas facilities in October 2010 and followed in January 2011 with an announcement that it had signed a purchase and sale agreement for the Murray units, subject to applicable regulatory approvals and approval by KGen stockholders.

In purchasing the Murray units, Oglethorpe Power has now officially canceled construction of a planned 605-MW, combined cycle generating plant that was in the siting stage.

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