Tenaska Power Fund Acquires Power Plant Portfolio For $1.6 Billion From Constellation Energy - 10/11/06
Omaha, Nebraska – Tenaska Capital Management, LLC (Tenaska Capital), on behalf of the Tenaska Power Fund, L. P. (the Fund), announced today that the Fund has signed an agreement to acquire 3,145 megawatts (MW) of natural gas-fired generation assets from Constellation Energy (NYSE: CEG) for $1.635 billion in cash, subject to closing adjustments.
The transaction is expected to close before the end of 2006 or in early 2007 and is subject to regulatory approvals and other standard closing conditions.
“This acquisition maintains our investment philosophy of focusing on quality facilities that are well-positioned to serve key markets,” said Paul Smith, senior managing director of Tenaska Capital. “The plants are clean, efficient and strategically located. The portfolio complements our existing assets and enhances our market position.”
The Fund is acquiring six generating facilities, including:
- High Desert in Victorville, California – 830 MW
- Rio Nogales in Seguin, Texas – 800 MW
- Holland in Shelby Co., Illinois – 665 MW
- Big Sandy in Neal, West Virginia– 300 MW
- University Park in Chicago, Illinois – 300 MW
- Wolf Hills in Bristol, Virginia – 250 MW
Tenaska Capital Management, LLC
Tenaska Power Fund, L.P. (the Fund) is a private equity limited partnership formed by its managing directors and the owners of Tenaska Energy, Inc. (Tenaska) to utilize their proven financial, marketing, technical and operating expertise to invest in a diverse group of energy and power companies and assets in the United States. The Fund is held outside of Tenaska’s holding company structure.
Tenaska Capital Management, LLC, the manager of the Fund, is an affiliate of Tenaska which is one of the largest independent power producers in the United States.
About Constellation Energy
Constellation Energy (http://www.constellation.com), a FORTUNE 200 company with 2005 revenues of $17.1 billion, is the nation’s largest competitive supplier of electricity to large commercial and industrial customers and the nation’s largest wholesale power seller. Constellation Energy also manages fuels and energy services on behalf of energy intensive industries and utilities. It owns a diversified fleet of more than 100 generating units located throughout the United States, totaling approximately 12,000 megawatts of generating capacity. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland.
