GWF Energy owns a portfolio of three natural gas-fired electrical generation facilities, including the 330MW Tracy project, the 97MW Hanford facility and the 96MW Henrietta facility, located in California’s San Joaquin Valley.
The Tracy combined cycle facility features GE 7EA technology along with enhancements including duct firing and advanced control systems.
Designed with quick-start capabilities, the 97MW Hanford and 96MW Henrietta facilities receive natural gas through the Southern California Gas system.
Pacific Gas & Electric Company (PG&E) has power purchase agreements (PPAs) to buy power from the three power plants through the fourth quarter of 2022.
AltaGas expects the deal to add incremental contracted earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $95m per year.
AltaGas chairman and CEO David Cornhill said: "Having a diversified energy infrastructure business across North America gives us more opportunities for growth and for creating shareholder value.
"The acquisition of these power facilities is an important addition to our business. Each asset has a power purchase agreement that will further enhance AltaGas’ stable earnings and cash flow."
The facilities, which are connected to the PG&E transmission system, are expected to complement AltaGas’ diverse energy infrastructure in North America.
AltaGas plans to finance the deal with a combination of equity and debt.
The acquisition is a part of AltaGas’s effort to boost clean energy portfolio by acquiring gas-fired electrical generation and improve power market and counterparty diversity.
Scheduled to be closed in the fourth quarter of this year, the deal is subject to customary approvals, including regulatory approvals from the US Federal Energy Regulatory Commission.
In March, AltaGas agreed to acquire US-based Blythe Energy from affiliates of LS Power Equity Advisors for $515m.
Blythe Energy owns a 507MW natural gas-fired combined cycle plant and a 230kV electric transmission line in California.
