Oglethorpe Power Corporation Seeks To Acquire Natural Gas-Fired Combined-Cycle Generating Facility From The Carlyle Group

Rhea-AI Summary

The Carlyle Group's affiliate, Southeast PowerGen, has agreed to sell the Effingham County Power facility, a 511 MW combined-cycle generating asset in Georgia, to Oglethorpe Power Corporation. This acquisition aims to enhance Oglethorpe's power supply portfolio as the industry transitions towards natural gas and renewables. The deal is subject to board approvals and regulatory conditions, with an expected closure in Q2 2021. This facility, which has been operational since 2003, will be Oglethorpe's fifth gas-fired acquisition in Georgia, totaling around 3,000 MW over 12 years.

Positive

• Strategic acquisition of a low-cost, efficient 511 MW facility to enhance power supply.
• Oglethorpe's fifth gas-fired acquisition contributes to a total of almost 3,000 MW over 12 years.
• Aligns with industry trends towards natural gas and renewable energy.

Negative

• None.

WASHINGTON and TUCKER, Ga., March 2, 2021 /PRNewswire/ -- Global investment firm, The Carlyle Group Inc. (NASDAQ: CG) affiliate Southeast PowerGen, LLC ("Southeast PowerGen"), and electric membership corporation, Oglethorpe Power Corporation, today announced that Oglethorpe, on behalf of a select group of members, has entered into a purchase and sale agreement to acquire Effingham County Power, a 511 megawatt operating combined-cycle generating and transmission facility located in Rincon, GA, from Southeast PowerGen.

This facility represents a critical baseload asset and is one of the most efficient natural gas-fired generating facilities in Georgia. The facility entered commercial operation in August 2003 and consists of two GE combustion turbines and one steam turbine. Financial terms of the transaction were not disclosed.

The acquisition is subject to Oglethorpe Board and Member approvals as well as other customary conditions, including regulatory approvals, and is expected to close in the second quarter of 2021.

"This acquisition of an existing, low-cost and proven facility in Georgia is a good strategic fit for our power supply portfolio.  This facility will help meet a group of our Members' power supply needs as the industry continues to transition and rely more heavily on natural gas and renewables," said Elizabeth B. Higgins, executive vice president and chief financial officer for Oglethorpe Power. 

Upon closing, this will be Oglethorpe's fifth acquisition of gas-fired generation in Georgia in the last 12 years, totaling almost 3,000 megawatts.

About Oglethorpe Power Corporation

Oglethorpe Power is one of the nation's largest power supply cooperatives with more than $13 billion in assets serving 38 Electric Membership Corporations which, collectively, provide electricity to approximately 4.2 million Georgia residents. A proponent of conscientious energy development and use, Oglethorpe Power balances reliable and affordable energy with environmental responsibility and has an outstanding record of regulatory compliance. Its diverse energy portfolio includes natural gas, hydroelectric, coal and nuclear generating plants with a combined capacity of approximately 7,900 megawatts. Oglethorpe Power was established in 1974 and is owned by its 38 Member Systems. Its headquarters are in Tucker, Georgia, an Atlanta suburb. For more information, visit www.opc.com.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Investment Solutions. With $246 billion of assets under management as of December 31, 2020, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs 1,825 people in 29 offices across five continents. Further information is available at www.carlyle.com. Follow The Carlyle Group on Twitter @OneCarlyle.

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SOURCE Oglethorpe Power Corporation

FAQ

What facility is Oglethorpe Power acquiring from The Carlyle Group?

Oglethorpe Power is acquiring the Effingham County Power facility, a 511 MW combined-cycle generating asset.

What are the financial terms of the acquisition of Effingham County Power?

The financial terms of the transaction have not been disclosed.

When is the expected closing date for the acquisition involving CG?

The acquisition is expected to close in the second quarter of 2021.

How does this acquisition fit into Oglethorpe Power's strategy?

This acquisition is a strategic fit to enhance Oglethorpe's power supply portfolio as the industry shifts towards natural gas and renewables.

How many gas-fired generation facilities has Oglethorpe acquired in Georgia?

This will be Oglethorpe's fifth gas-fired generation acquisition in Georgia.