NuCoastal Power Announces a Strategic Investment by ArcLight Capital

2008-08-20 04:05:00

    HOUSTON, Aug. 20 /EMWNews/ -- In July 2008, an affiliated fund of

ArcLight Capital Partners, LLC ("ArcLight") completed an initial investment

in NuCoastal Power Holdings, LLC ("NuCoastal Power") located in Houston,

Texas. The new company will be re-named ReNu Power LLC.

    Founded in 2005, NuCoastal Power is a power generation company whose

strategy has been to acquire and re-develop a portfolio of five

"mothballed" power plants in the capacity-constrained Texas ERCOT southern

zone. Arclight's capital commitment to NuCoastal Power is sufficient to

fund the development of the portfolio.

    Permitting for all of the development plants has been completed, as

well as procurement of most of the major equipment needed to transform

these acquisitions into high-efficiency low-cost producers. Of the five

power plant sites, four of the plants are being repowered as gas-fired

plants; the fifth plant will be repowered as a solid-fuel (petroleum coke)

plant. In total, the portfolio represents 1,500 MW of capacity.

    NuCoastal Power's first gas-fired repowering project in Victoria, Texas

is scheduled to be on-line in the fourth quarter of 2008 and will benefit

from a six-year tolling agreement. Construction is expected to begin on two

other gas-fired plants -- one located in Corpus Christi and one located in

McAllen -- by the end of 2008. The Corpus Christi plant is anticipated to

be complete in 2009 and the McAllen plant is expected to be complete in

2010. Development on the fourth gas-fired plant will begin in 2009 with a

2011 expected completion date. In August 2007, the Texas Committee on

Environmental Quality issued an air permit with respect to the solid-fuel

plant at Point Comfort. Fabrication on a new circulating fluidized bed

combustion boiler and detailed engineering work has commenced. The

anticipated project completion date is the end of 2012.

    According to Roy Hart, Chief Executive Officer of NuCoastal Power, "We

are extremely bullish on the market dynamics of the southern zone ERCOT

market. Given the attractive heat rates of our gas-fired plants and the low

cost fuel supply for our solid-fired plant, we believe that the addition of

the resources brought by ArcLight completes the picture. Their extensive

financial, project development and execution experience fits well with the

innovative approach brought by NuCoastal Power to this market opportunity."

    Dan Revers, the managing partner of ArcLight added, "ArcLight is

excited about the opportunity to develop and construct a sizeable portfolio

in the ERCOT market with the capable and experienced development team at

NuCoastal. NuCoastal's repowering strategy represents a value-added

approach to ArcLight's existing development strategy".

    About Us

    NuCoastal Power is a power generation company formed to acquire and

re-develop a portfolio of five "mothballed" power plants in the Texas ERCOT

southern zone. NuCoastal Power is based in Houston, Texas.

    ArcLight Capital is one of the world's leading energy investment firms

with more than $6.8 billion under management. ArcLight's investment team

has extensive energy investing experience, industry relationships, and

asset level knowledge. ArcLight is headquartered in Boston, Massachusetts

with offices in New York City, London and Luxembourg. More information

about ArcLight can be found at

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