Ameren targets end-of-2013 closing of gas plant sale to Rockland

The AmerenEnergy Medina Valley Cogen LLC (Medina Valley) subsidiary of Ameren (NYSE: AEE) has a deal to sell three gas-fired power plants in Illinois to Rockland Capital LLC, Ameren reported in a Nov. 8 Form 10-Q statement.

On Oct. 11, in a corporate restructuring, Medina Valley purchased the Elgin, Gibson City, and Grand Tower gas-fired energy centers from Ameren Energy Generating Co. (Genco), which operates a merchant electric generation business in Illinois.

“Medina Valley has entered into an agreement to sell the Elgin, Gibson City, and Grand Tower gas-fired energy centers to Rockland Capital,” said the Form 10-Q. “This agreement requires a portion of the purchase price to be held in escrow until the two year anniversary of the closing of the sale to fund certain indemnity obligations, if any, of Medina Valley. Ameren expects the sale of the Elgin, Gibson City, and Grand Tower gas-fired energy centers to Rockland Capital to close by the end of 2013, subject to receipt of FERC and other regulatory approvals. If this sale is completed, Medina Valley could pay Genco after-tax net proceeds of up to an additional $15 million based on the maximum escrow amount that could ultimately be released, projected working capital adjustments, and projected transaction expenses.”

  • Grand Tower Energy Center is a 478-MW combined cycle facility in Grand Tower, Ill.;
  • Elgin Energy Center is a 460-MW simple cycle facility in Elgin, Ill.; and
  • Gibson City Energy Center is a 228-MW simple cycle facility in Gibson City, Ill.

Ameren, which is looking to cut back its merchant generation business in favor of its regulated utility operations in Missouri, also has a pending agreement to sell its Illinois coal plants to Dynegy (NYSE: DYN).

Notable is that Rockland Capital separately has a pending deal to buy from Canada-based Maxim Power Corp. (TSX: MXG) five gas-fired power plants in the U.S.

Rockland Capital is a private equity firm founded in 2003. It is focused on the acquisition, optimization and development of companies and projects in the North American power sector. The firm manages Rockland Power Partners, Rockland Power Partners II and Rockland Capital Energy Investments and it has offices in Houston and New York.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.