ArcLight Capital Partners LLC announced Dec. 23 that Eastern Generation LLC, a newly-formed portfolio company controlled by ArcLight Energy Partners Fund VI LP, completed a transaction with affiliates of Tenaska Capital Management LLC, whereby Eastern Generation acquired a natural gas- and dual-fuel-fired portfolio consisting of seven plants totaling 4.8 GW.
The Eastern Generation portfolio includes:
- three natural gas- and dual-fired facilities located within the New York ISO Zone J power market (Astoria, a 954-MW facility located in Queens, N.Y., Gowanus, a 631-MW facility located in Brooklyn, N.Y., and Narrows, a 322-MW facility also located in Brooklyn, N.Y.) and the US Power Generating Co. (USPG) asset management and operations platform;
- New Covert, a 1,100-MW highly efficient combined cycle natural gas-fired facility located near Covert, Mich., which is expected to be interconnected to PJM through a dedicated transmission line in June 2016; and
- three natural gas-fired facilities located in the PJM market (Rolling Hills, a 850-MW facility in Wilkesville, Ohio, Lincoln, a 656-MW facility located in Manhattan, Ill., and Crete, a 328-MW facility in Crete, Ill.)
“The portfolio acquired by Eastern Generation represents an attractive opportunity for ArcLight to benefit from favorable dynamics driven in part by the retirement and displacement of coal-fired and nuclear assets in the PJM market as well as an opportunity to re-enter New York City’s Zone J power market,” said Dan Revers, Managing Partner of ArcLight. “We are pleased to work with the strong management team at USPG, led by CEO Mark Sudbey, to optimize the entire Eastern Generation portfolio and Consolidated Asset Management Services providing operational expertise to the non-New York power generation facilities.”
Boston-based ArcLight is one of the leading private equity firms focused on North American and Western European energy assets. Since its establishment in 2001, ArcLight has invested over $13.9 billion across multiple energy cycles in more than 90 investments.