This is CPV's second successful project financing since being acquired by Global Infrastructure Partners in May 2015.
The nearly $753 million debt financing, led by MUFG Union Bank, N.A., Credit Agricole Corporate and Investment Bank, and CIT Bank, N.A., was arranged with a total of sixteen lenders participating in the financing.
The consortium of lenders is comprised of long-standing CPV relationship-based lenders as well as a few lenders for whom CPV Towantic represents their first investment in the U.S. power generation markets.
CPV Towantic has obtained permits to be powered by two of GE's 7HA heavy-duty gas turbines with a steam turbine and associated generators. The 785 MW combined cycle plant will be able to provide the equivalent power needed to supply about 800,000 US homes. GE's 7HA technology is the world's largest, most efficient 60 Hz gas turbine.
The power plant will be fueled by natural gas from the Algonquin Interstate Pipeline and will use ultra-low sulfur distillate as a backup fuel.
Electrical interconnection will be at Connecticut Light & Power's 115kV circuit between Baldwin Junction and Beacon Falls. Gemma Power Systems was selected as the Engineering Procurement and Construction contractor that will oversee construction of the project.
CPV Towantic was originally approved by the Connecticut Siting Council in 1999 as a 512 MW project, but was not built due to market conditions. CPV entered into a partnership with GE Energy Financial Services in 2012 to advance the project and its competitiveness in the marketplace.
In 2014, New England's grid operator (ISO-New England) announced the retirement of about ten percent of the region's total electric generating capacity. With more expected in the years to come CPV Towantic is ideally-suited to help meet this growing need.
CPV Towantic represents one of the largest private-sector infrastructure projects in the state. A study by the University of Connecticut's Connecticut Center for Economic Analysis (CCEA) projects construction and operation of CPV Towantic will generate more than $7.9 billion in new personal income for Connecticut residents over the next 25 years and will create, at its peak in the construction phase, more than 2,300 positions. During its operating life, CCEA projects CPV Towantic will generate about 1,800 new jobs, a measurable increase of about 0.1 percent in Connecticut's total employment.