Optim Energy identifies top bidder for Twin Oaks coal plant

Optim Energy LLC told its bankruptcy court on Aug. 5 that the winner of an Aug. 4 auction for the coal-fired Twin Oaks power plant was Major Oak Power LLC with an offer of $126m.

Twin Oaks is a two-unit, 305-MW, lignite-fired plant located in Robertson County, Texas. When it sought Chapter 11 protection in February at the U.S. Bankruptcy Court for the District of Delaware, Optim Energy said that Twin Oaks and a burdensome lignite supply contract for the plant were major sources of its financial problems. Optim also owns two gas-fired power plants in Texas that aren’t for sale.

Major Oak Power is an affiliate of Blackstone Group LP that was in the early, pre-auction bidding for the plant.

Twin Oaks Power LLC was the second highest auction bidder at $121.5m and it will serve as the “Back-up Bidder” for the facility. Twin Oaks Power is an affiliate of energy investor ArcLight Capital Partners LLC.

An Aug. 7 hearing will be held before Judge Brendan Shannon to review the auction results, with the judge to at that point possibly approve the top bidder, depending on whether any creditor protests are lodged.

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.