Oglethorpe Power Corp. completed the purchase of two natural gas-fired, combined-cycle generating units in Georgia for $529 million, including working capital and closing adjustments.
With the completion of the purchase, Oglethorpe has cancelled construction of a planned 605 MW combined-cycle power plant.
The units are part of the purchase of KGen Murray I and II LLC. The two units represent a generating capacity of 1,220 MW. The sale also includes an existing power purchase agreement with Georgia Power Co. for the entire output of Murray I through May 31, 2012.
Oglethorpe Power expects long-term financing for the Murray units to come primarily from loans guaranteed by the Rural Utilities Service. Taxable bonds would make up the difference for any amount not funded through the loan.
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