LAGUNA BEACH, CA–(Marketwire – Sep 27, 2012) – Southern California Telephone & Energy, a privately held company, has completed the purchase of North Energy Central (NEC) www.northenergycentral.com from the famed Power Plant Designer and Builder Michael Medock for an undisclosed amount.
NEC is incorporated in both the United States and the Dominican Republic. The deal centers on an electrical energy generation project in the Dominican Republic that Mr. Medock had been working on for over two years. The estimated cost of the project is over $650 million USD with annual gross revenues of over $450 million USD per year.
Greg Michaels, Founder and CEO of Southern California Telephone & Energy, states, “With over 40 years of accumulated expertise, over $5 billion in projects and credentials from the design, construction, and operation of nearly 70 power generation projects to the world’s electric power market, NEC is a perfect fit to our growing business model.” Prior to the acquisition, NEC worked with the government of the Dominican Republic for over two years on an electrical generation project for the country whose residents desperately needed, and continue to need, electrical generation. Using agreed upon government land, NEC will develop a 300 to 600 megawatt Power Plant with Liquid Natural Gas (LNG) storage facilities on the north coast of the Dominican Republic near Manzanillo. The company currently maintains a provisional concession on the land and has completed its environmental studies.
The Dominican Power Plant Project is a combined cycle facility which consists of six (6) to eight (8) Combustion Turbine Generators and multiple Heat Recovery Steam Generators equipped with duct burners, multiple Steam Turbine Generators with multi-cell mechanical draft cooling tower(s), and associated auxiliary systems and equipment. Additionally, the Company will construct a 160,000 cubic meter LNG storage tank and will be constructing its own LNG receiving terminal. This will be accomplished via a finger pier with a berth facility to receive the LNG tankers. “I have designed this project to be the cleanest power plant in the Caribbean, if not the world,” explains Michael Medock.
The former Dominican President declared a state of emergency through a presidential decree regarding the power generation deficit as well as an urgent need for new generation projects to cover the widening chasm of electrical needs. Greg Michaels, CEO of SCT&E, confirms, “We have the support of the Dominican People. We have held public meetings and the people of Monte Cristi and Pepillio Salcedo desperately need the good jobs. The project will create 300 new jobs and the added generation will help the entire country who currently suffers from daily rolling blackouts.” Michaels further states, “We believe that the new government will move this project forward for the growth of their beautiful country.”
North Energy Central is scheduled to sell 150 megawatts of the electric power produced by the project to the Corporacion Dominicana de Empresas Electricas Estatales (CDEEE). NEC will sell the remaining megawatts of the electricity produced to the open market and under contracts directly to Dominican Load Serving Entities and Medium Merchant Commercial Loads who need the power to expand their business operations. The project shall be tax exempt and duty free for the company as it will be located in what are called the “frontier lands.” Michaels hopes that the serious tax advantages will attract potential investors.
The company’s CEO Greg Michaels and its Executive Managing Director Tom Delaney have been negotiating with financiers both internationally and domestically. “There has been a lot of interest in the project thus far,” says Michaels. The energetic CEO adds, however, “We’re still talking to others.” Executives with the company made trips to Asia and the Middle East this summer to discuss the development of the Dominican Power Plant as well as other projects with potential investors and large international bankers.