Rhode Island State Energy Center in Johnston being sold for $490M

THE RHODE ISLAND State Energy Center is being sold by Entergy Corp. to Washington, D.C.-based Carlyle Power Partners for approximately $490 million. / COURTESY ENTERGY CORP.
THE RHODE ISLAND State Energy Center is being sold by Entergy Corp. to Washington, D.C.-based Carlyle Power Partners for approximately $490 million. / COURTESY ENTERGY CORP.

JOHNSTON – Entergy Wholesale Commodities, a division of Entergy Corp., is selling its 583-megawatt Rhode Island State Energy Center to Washington, D.C.-based Carlyle Power Partners for approximately $490 million.

The deal, subject to closing adjustments, was announced Thursday.

Entergy Wholesale Commodities bought the natural gas-fired plant for $346 million in December 2011, according to a news release about the deal.

Entergy said if the sale closing occurs in the fourth quarter, it should record a net gain of approximately 50 cents per share, subject to working capital and other adjustments. The gain will be classified as a special item and excluded from operational earnings, Entergy said.

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Said Entergy Chairman and CEO Leo Denault, “RISEC has been a very good investment for us, and its sale is consistent with that strategy.”

The transaction is contingent upon obtaining necessary regulatory approval from the Federal Energy Regulatory Commission and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

“RISEC is among the most efficient combined cycle facilities in New England and is well-positioned to capitalize on strong regional market dynamics. New England represents an attractive market for investment due to its transparency and incentives for reliable generation. Additionally, the retirement of aging generation in the region is putting a greater emphasis on efficient gas-fired generators, like RISEC, to meet everyday electricity demand,” Matt O’Connor, Carlyle managing director and co-head of Carlyle Power Partners, said in a statement.
RISEC began commercial operations in 2002.
Equity capital for the transaction will come from Carlyle Power Partners II LP and Carlyle Power Opportunities Capital Partners LP.
The acquisition is being done in conjunction with Carlyle’s portfolio company Cogentrix Energy Power Management LLC and increases the size of Carlyle’s power generation portfolio to 18 power plants totaling more than 4,900 gross megawatts.

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