Carlyle Group completes purchase of 823-MW Red Oak plant

The Carlyle Group (NASDAQ:CG) said Nov. 7 that it has completed its purchase of the 823-MW Red Oak power plant in Sayreville, N.J.

Earlier this year, Carlyle Group announced that it had agreed to buy the combined-cycle, natural gas power plant from Energy Capital Partners. Energy Capital Partners had evidently bought the plant from an AES (NYSE:AES) affiliate in 2012.

The Carlyle acquisition was executed in conjunction with Cogentrix Energy Power Management, LLC, which was acquired by Carlyle funds in late 2012, and brings the total number of power generating facilities acquired since then to 11 with an aggregate enterprise value of more than $1.2bn. Financial terms were not released.

“This acquisition is a great opportunity to create value for our fund  investors by taking advantage of the changing power generation landscape in North America,” said Carlyle Managing Director and Chairman of the Board of Cogentrix Robert Mancini.

Red Oak has a long-term contract with TAQA Gen-X LLC through a long-term tolling agreement set to expire in 2022. Red Oak is part of the PJM Interconnection market.

Equity capital for this transaction came from Carlyle’s Power and Infrastructure funds.

In October, the Federal Energy Regulatory Commission (FERC) approved the sale of Red Oak to Cogentrix Red Oak Holdings LLC. In September the Carlyle affiliate said that it was buying Red Oak as well as various generating units in California.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.