ArcLight Teams With GE and Singapore's GIC to Form Largest Fully Independent Power Producer in US SoutheastBy Arclight Capital Partners Llc, PRNE
Sunday, January 23, 2011
MONROE, Georgia, January 24, 2011 - ArcLight Capital Partners, LLC ("ArcLight"), GE Energy Financial
Services, a unit of GE (NYSE: GE), and the Government of Singapore Investment
Corporation Pte Ltd ("GIC") announced today they have agreed to become
partners in five Georgia natural gas-fired power plants that together make up
the largest fully independent power producer in the southeastern United
States. The GE unit and GIC will each acquire 24.95 percent of the portfolio
from an affiliate of ArcLight, now its sole owner. An affiliate of ArcLight
will retain 50.10 percent.
(Logo: photos.prnewswire.com/prnh/20110124/NE34658 )
Financial details of the transaction were not disclosed. The closing of
the transaction remains subject to approval by the Federal Energy Regulatory
Commission and Committee on Foreign Investment in the United States and is
expected to occur toward the end of the first quarter of 2011.
The plants, located throughout Georgia, comprise a combined cycle
facility and four single-cycle peaking facilities, each of which is less than
10 years old. Together, they are capable of generating more than 2,500
megawatts of power, in several cases using GE gas-fired turbines. All five
facilities, critical to the regional power supply and grid stability, are
contracted under long-term agreements to investment-grade counterparties and
are managed by Consolidated Asset Management Services, an ArcLight affiliate.
The portfolio comprises:
- Monroe - a 320-megawatt plant in Monroe, 50 miles east of Atlanta - Walton - a 450-megawatt plant in Monroe, adjacent to the Monroe plant - Washington - a 602-megawatt plant in Linton, 50 miles east of Macon - Sandersville - a 640-megawatt plant in Sandersville, seven miles from the Washington plant - Effingham - a 515-megawatt plant in Rincon, 20 miles north of Savannah
The portfolio is well positioned to benefit from the macroeconomic
recovery and more stringent energy and carbon legislation as well as the boom
in production of unconventional natural gas in the United States. In
addition, the portfolio will support additional infrastructure investment in
the region to meet the demand for power and accommodate the power supply
reconfiguration expected to unfold over the next decade.
"Since the initial investment in this portfolio in 2007, ArcLight and
CAMS have developed a strong track record of operational success and
commercial reliability in a promising regional market," said Dan Revers,
Managing Partner of ArcLight. "We are excited about the opportunity to
partner with these two highly respected and valued-added investors, and we
look forward to working closely with GE and GIC to maximize value across the
portfolio and platform."
ArcLight has completed several transactions with GE Energy Financial
Services, including the GE unit's lead lending of $98 million in senior
secured credit facilities for the Sandersville power plant.
"This transaction enables us to deepen our relationship with ArcLight,
establish ties with an important new partner, GIC, and work together on an
attractive set of assets in a core focus area, thermal power generation,"
said Kevin Walsh, managing director and leader of Power and Renewables at GE
Energy Financial Services.
"This is an attractive portfolio of contracted power generation
facilities in a region experiencing an increasing demand for low carbon,
efficient power. The completion of this transaction complements our growing
portfolio of infrastructure investments in the US. We are delighted to have
ArcLight and GE, who have extensive experience in owning and operating
similar assets, as our partners in this deal," said Mr. Ang Eng Seng, Global
Head of GIC's Infrastructure Group.
ArcLight is one of the world's leading energy investment firms with more
than $6.8 billion under management. ArcLight's investment team has extensive
energy investing experience, industry relationships, and asset level
knowledge. ArcLight is headquartered in Boston, Massachusetts with offices in
New York City, London and Luxembourg. More information about ArcLight can be
found at www.arclightcapital.com.
About GE Energy Financial Services
GE Energy Financial Services' experts invest globally with a long-term
view, backed by the best of GE's technical know-how, financial strength and
rigorous risk management, across the capital spectrum, in one of the world's
most capital-intensive industries, energy. GE Energy Financial Services helps
its customers and GE grow through new investments, strong partnerships and
optimization of its $21 billion in assets. GE Energy Financial Services'
global portfolio of power projects can produce 23 gigawatts, equivalent to
the installed generating capacity of the Netherlands. GE Energy Financial
Services is based in Stamford, Connecticut. For more information, visit
GE (NYSE: GE) is a diversified infrastructure, finance and media company
taking on the world's toughest challenges. From aircraft engines and power
generation to financial services, health care solutions, and television
programming, GE operates in more than 100 countries and employs about 300,000
people worldwide. For more information, visit the company's Web site at
The Government of Singapore Investment Corporation Pte Ltd ("GIC") is a
global investment management company established in 1981 to manage
Singapore's foreign reserves. GIC invests internationally in equities, fixed
income, foreign exchange, commodities, money markets, alternative
investments, real estate, private equity and infrastructure. GIC has grown
from managing a few billion dollars to managing well above $100 billion today
and is now amongst the world's largest fund management companies. GIC's
infrastructure portfolio is focused on minority equity stakes in power
generation, transmission and distribution, water utilities, and also in
transport assets such as airports, seaports and highways. GIC strives to
achieve good long-term returns on assets under management, to preserve and
enhance Singapore's reserves. For more information, visit
Heidi Milne of ArcLight Capital Partners, +1-617-531-6304; or Andy Katell of GE Energy Financial Services, +1-203-961-5773; or Jennifer Lewis of Government of Singapore Investment Corporation, +65-6889-8383
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