Tenaska Power Fund to Sell Illinois Plant to Indiana Cooperatives - 04/14/08
OMAHA, Nebraska – Tenaska Capital Management, LLC (TCM), on behalf of the Tenaska Power Fund, L.P. (TPF), today announced the sale of Holland Energy, a 665-megawatt generating station in Illinois, to Indiana electric cooperatives Wabash Valley Power and Hoosier Energy.
The transaction is expected to close by January 2009.
TPF acquired Holland Energy, located near Beecher City, Ill., from Constellation Energy in 2006. The natural gas-fueled facility is a combined-cycle combustion turbine plant that generates electricity for the Midwest Independent System Operator grid.
TCM is an affiliate of Tenaska, an independent energy company based in Omaha. TPF is a private equity limited partnership of institutional investors outside Tenaska’s holding company structure.
“The sale process has been a win-win for all parties involved. Holland is a quality power plant which will significantly meet the individual needs of both Hoosier Energy and Wabash Valley Power,” said Paul Smith, senior managing director of TCM.
“The Holland Energy facility will serve as a reliable, competitively priced source of power for our electric cooperatives in Indiana and Illinois,” said Hoosier Energy CEO Steve Smith. “It will add to our fuel diversity and complement our existing coal and natural gas-fueled power plants,” Smith noted.
Rick Coons, CEO of Wabash Valley Power, cited the value of Holland Energy to the more than 350,000 homes, farms, businesses and industries it serves. “This generation acquisition continues the diversification of our power supply resources, satisfying the growing needs of our membership,” he said. “We’re pleased to be partnering with Hoosier Energy on the purchase of this facility,” he added. Wabash Valley Power is headquartered in Indianapolis, Ind.
About Tenaska Power Fund
Tenaska Power Fund, L.P. is a private equity partnership of institutional investors outside privately held energy company Tenaska’s holding company structure. It was formed by the owners of Tenaska and is managed by a Tenaska affiliate, Tenaska Capital Management, LLC (TCM). TPF invests in a diverse group of energy and power companies and assets in the United States, with a focus on power generation, gas storage and midstream energy assets.
About Wabash Valley Power
Wabash Valley Power Association is a generation and transmission cooperative based in Indianapolis that provides wholesale electricity to 28 distribution systems located in Indiana, Illinois, Michigan, Missouri and Ohio. Wabash Valley Power owns 10 landfill gas generation plants, in addition to coal, petroleum coke and natural gas facilities.
About Hoosier Energy
Hoosier Energy is a generation and transmission cooperative providing electric power to 17 member electric distribution cooperatives in central and southern Indiana and one member cooperative in Illinois. Based in Bloomington, Hoosier Energy operates coal, natural gas and renewable energy power plants and delivers power through a 1,450-mile transmission network.