January 7, 2009
Contacts:
Chris Tryba, Hoosier Energy (812) 876-0337
Rick Moore, Hoosier Energy (812) 876-0282
Sabrina Kapp, Wabash Valley Power (317) 481-2831
Cooperative power suppliers complete purchase of generating plant
Hoosier Energy and Wabash Valley Power, Indiana-based electric cooperative power suppliers, have completed the purchase of a 627-megawatt combined cycle power plant near Beecher City, Illinois, from Tenaska Power Fund, L.P.
The joint $383 million purchase of the Holland Energy LLC natural gas-fired combined cycle plant was closed on Wednesday.
The power plant will help meet the power needs of the two generation and transmission cooperatives' consumer-owned electric cooperatives while contributing to reserve requirements and providing value in energy markets. The facility will increase the reliability of electric supply and help manage costs for cooperative consumers.
Hoosier Energy President and Chief Executive Officer Steve Smith said the Holland facility fits well into Hoosier Energy's generating assets portfolio.
"With the costs of new generation rising and demand growing, the Holland plant will produce power at a competitive price for the consumers served by our members," Smith said. "The plant's clean operations fit well with our existing coal, natural gas and renewable resources. We look forward to becoming a valuable part of the local community in Shelby and Effingham counties."
Wabash Valley Power President and Chief Executive Officer Rick Coons cited the value of Holland Energy to the more than 350,000 homes, farms businesses and industries served by its member systems.
"The addition of this asset represents our commitment to increasing the diversification of our power supply portfolio," Coons said. "With coal, natural gas and a growing emphasis on alternative energies, we're well-positioned to serve our member cooperatives as their needs change. This is an exciting time for our Association."
The Holland Energy plant is the second electric generation partnership project between Hoosier Energy and Wabash Valley Power. The two Indiana-based generation and transmission cooperatives also co-own the 258-megawatt peaking natural gas-fueled Lawrence Station in south-central Indiana.
Power from the Holland plant is delivered into the power grid controlled by the Midwest Independent System Operator over 345-kilovolt transmission lines owned by Ameren Illinois.
North American Energy Services will continue to operate the facility under a contract with Hoosier Energy and Wabash Valley Power Association. Twenty-four workers are employed at the Holland plant.
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.
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 renewable energy power plants, in addition to coal, petroleum coke and natural gas facilities.
About Tenaska Power Fund
Tenaska Power Fund, L.P. (TPF) is a private equity partnership of institutional investors managed by Tenaska Capital Management, LLC. 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.
Combined cycle generating unit
An electric generating unit that consists of one or more combustion turbines and one or more boilers with a portion of the required energy input to the boilers provided by the exhaust gas of the combustion turbines. The units deliver higher fuel efficiency than simple cycle combustion turbines.