Capital Power spending US$1.1 billion in pair of deals for U.S. power plants
November 24, 2023 | By The Canadian Press
EDMONTON – Capital Power Corp. says it has signed a pair of deals with CSG Investments, Inc., a subsidiary of Beal Financial Corp., to buy two natural gas power plants in the United States for a total of US$1.1 billion.
Under the first deal, the Edmonton-based company will acquire CXA La Paloma, which owns the La Paloma natural gas-fired generation facility in Kern County, Calif.
The second agreement will see Capital Power form a 50-50 partnership with an affiliate of a fund managed by BlackRock’s Diversified Infrastructure business to buy New Harquahala Generation Co. LLC, which owns the Harquahala natural gas-fired generation facility in Maricopa County, Ariz.
Capital Power and BlackRock will each be responsible for half of the cash consideration for the Harquahala deal, while Capital Power will be responsible for the operations and maintenance and receive an annual management fee.
The acquisitions are both expected to close in the first quarter of 2024, subject to regulatory approvals and other customary closing conditions.
To help fund the acquisitions, Capital Power says it is raising C$400 million, including C$100 million from Alberta Investment Management Corp.