Chicago-based energy firm Lakeside Energy has completed the acquisition of a 150MW natural gas-fired power plant in Hazleton, Pennsylvania, from an affiliate of integrated natural gas company Williams.
The 150MW Hazleton power plant serves the PJM regional transmission organization and is reportedly considered an important facility in the transmission-constrained eastern zone.
Lakeside noted that, as a member of PJM, Hazleton will commit its capacity to PJM via the reliability pricing model (RPM) process. PJM’s RPM process reportedly provides secure, mid-term predictable capacity pricing.
Simultaneous with the closing, Lakeside executed an energy services agreement (ESA) with Eagle Energy Partners, a wholly owned subsidiary of Lehman Brothers. Eagle will be the energy manager for Hazleton during the term of the ESA, and as such, will assist Lakeside with the scheduling of power and gas. Lakeside will operate the facility.
Lakeside intends to complete additional strategic acquisitions in the power generation sector as it strives to build a portfolio with geographic and fuel source diversity. Focused on long-term contracted assets in key geographies, its power generation business seeks to target primarily natural gas, coal, biomass and renewable fuel opportunities.