The new portfolio will be named under the name FREIF North American Power I.
The FREIF North American Power I portfolio of assets consists of Crockett Cogen Project, a 240MW natural gas co-generation plant located in Crockett, California; Hobbs Generating Station, a 604MW natural gas CCGT power plant located in Hobbs, New Mexico.
It also includes the Borger Plant, a 230MW natural and refinery gas co-generation plant located in Borger, Texas; and Waterside Power Holdings, a 72MW oil-fired peaker plant located in Stamford, Connecticut.
As part of the agreement, the California Public Employees Retirement System will acquire the 660MW HVDC transmission line, Neptune Regional Transmission System (Neptune).
The Neptune Regional Transmission System is a 500kV, 65-mile submarine electric power transmission system connecting Sayreville, New Jersey, and Hicksville, Long Island, New York.
First Reserve’s Energy Infrastructure Fund will hold a controlling ownership position in the Power Portfolio, and CalPERS’ investment will result in direct ownership of 75% of the Class C shares of Neptune.
The generation projects operate under long-term power purchase agreements and Neptune operates with a firm transmission capacity purchase agreement.
Terms of the transactions were not disclosed and are expected to close in the first quarter of 2012 subject to regulatory approvals.
