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Joining other generators that see value in Texas power plants but not yet for new build construction, private equity firm Blackstone Group LP has jumped back into the state with an agreement to purchase three plants within the Electric Reliability Council of Texas Inc. region, leaving owner Direct Energy LP with a nice profit from the deal.
Blackstone on Dec. 18 reached an agreement with retail energy provider Direct Energy to buy the combined-cycle natural gas-fired power plants for $685 million in cash. According to SNL Energy data, the price translates to $455/kW reflecting all three plants based on nameplate capacity. Each of the plants -- the 540-MW Bastrop plant is in Bastrop County, the 260-MW Paris plant is in Lamar County, and the 495-MW Frontera plant is in Hidalgo County -- has two combined-cycle combustion turbine units and one combined-cycle combustion steam unit. The transaction is subject to regulatory review and is expected to close in the first quarter of 2014.
"This is our first investment since Texas Genco [in 2004] and we are excited to be reentering the merchant power sector in the U.S. and Texas specifically," said Christine Anderson, senior vice president in Blackstone's public affairs group, in an emailed statement. Texas Genco Holdings LLC was acquired by NRG Energy Inc. in 2006....