Under the deal, Eastern Generation purchased a natural gas and dual-fuel fired portfolio comprising seven power generation plants totaling 4.8 GW.
The portfolio includes three natural gas and dual-fired generating units situated within the NYISO Zone J power market; New Covert, a 1,100MW combined cycle natural gas-fired power generation facility near Covert, Michigan which is expected to be interconnected to PJM through a transmission line in June 2016; and three natural gas-fired power generation facilities located in the PJM power market – a 850MW facility located in Wilkesville, Ohio, a 656 MW facility located in Manhattan, Illinois, and Crete, a 328MW facility located in Crete, Illinois.
Among the three natural gas and dual-fired generating units situated within the NYISO Zone J power market are – a 954 MW facility located in Queens; a 631 MW facility located in Brooklyn; and a 322 MW facility also located in Brooklyn.
ArcLight managing partner Dan Revers said: "The portfolio acquired by Eastern Generation represents an attractive opportunity for ArcLight to benefit from favorable dynamics driven in part by the retirement and displacement of coal-fired and nuclear assets in the PJM market as well as an opportunity to re-enter New York City’s Zone J power market.
"We are pleased to work with the strong management team at USPG, led by CEO Mark Sudbey, to optimize the entire Eastern Generation portfolio and Consolidated Asset Management Services providing operational expertise to the non-New York power generation facilities."
ArcLight has presence in the North American and Western European energy markets.
Recently, affiliates of ArcLight Capital Partners, which controls the general partner of American Midstream Partners (AMID), announced that ArcLight has approved a unit purchase program, which may see ArcLight purchase up to $75m of common units of the AMID.
