Arkansas Electric Cooperative Corp. (AECC) has agreed to purchase a 746-MW combined cycle gas-fired power plant located near Malvern, Ark., from Hot Spring Power Co. LLC.
The two parties entered into the agreement on Jan. 31, AECC said in a recently-released financial report on the quarter that ended Jan. 31.
“Certain terms of the transaction are confidential information not for public disclosure pursuant to a confidentiality agreement with the Seller,” the report said. “AECC is purchasing the leasehold interest in certain assets owned by Hot Spring County and assuming certain associated liabilities, upon the terms and conditions set forth in the Purchase and Sales Agreement. AECC is seeking all necessary regulatory approvals for this acquisition which is scheduled to close on or before August 31, 2012.”
The AECC report didn’t identify the controlling party for Hot Spring Power. A fact sheet on the SUEZ Energy Generation NA website shows that SUEZ Energy controls a 746-MW Hot Spring plant located at Malvern, Ark., under the name Hot Spring Power Co. LLC.
In another area of power development, for the calendar year 2012, AECC has budgeted $60.5m for capital expenditures. This includes $47.7m to be incurred for generation and $12.8m for transmission and other miscellaneous general capital expenditures. The budgeted capital expenditures for 2012 include $23m for the completion of the coal-fired John W. Turk, Jr. power plant.
AECC has a $75m perpetual line-of-credit with the National Rural Utilities Cooperative Finance Corp. (NRUCFC) and a $10m committed line of credit with Regions Bank that terminates on Aug. 15. AECC uses advances from the member line of credit program ($65.9m as of Jan. 31) to support daily cash needs. AECC also has a $185.5m loan approved from NRUCFC for construction of Turk, a 600-MW, ultra supercritical steam turbine generating unit, of which AECC owns 11.667% or 70 MW. AECC has until Dec. 31 to draw funds from this loan, which matures on Jan. 1, 2042.
AECC is a generation and transmission cooperative headquartered in Little Rock. It is the wholesale power supplier for 17 electric distribution cooperatives in Arkansas. Generation resources immediately available to AECC provide 3,110 MW of capacity.