AltaGas Acquires 3 California NatGas-fired Plants in $642 Million Deal

AltaGas Acquires 3 California NatGas-fired Plants in $642 Million Deal

AltaGas has made a more than half-billion-dollar deal to acquire three natural gas-fired power plants in California’s San Joaquin Valley.

The Canadian utility operator will pay $642 million to Highstar Capital IV in exchange for GWF Energy, owner of the 330-MW Tracy project, the 97-MW Hanford facility and the 96-MW Henrietta facility.

AltaGas estimates the deal will add $95 million a year to its earnings.  The company will finance the acquisition with equity and debt. 

Pacific Gas & Electric Company (PG&E) has power purchase agreements with GWF Energy for all three plants through 2022.  The plants are connected to PG&E’s transmission system.

The Tracy combined-cycle plant features GE 7EA technology and enhancements like duct firing and advanced control systems.  The Hanford and Henrietta facilities are designed with quick-start capabilities and receive natural gas through the Southern California Gas system.

Subject to approval, the deal closes in the fourth quarter of 2015.

In 2013, AltaGas acquired Blythe Energy in a $515 million deal with LS Power Equity Advisors.  Blythe Energy is the owner of a 505-MW natural-gas-fired combined-cycle plant as well as a 230-kV electric transmission line in California.

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