Japanese Companies to Buy Stakes in Five Tenaska Natural Gas Plants

Nebraska-based Tenaska on Monday said it would sell a portion of interests in five power plants to Japanese energy firms Tyr Energy and Chubu Electric.

The five plants are: the 945-MW Tenaska Georgia Generating Station near Franklin, Ga.; the 885-MW Tenaska Virginia Generating Station near Scottsville, Va.; the 1,220-MW Tenaska Kiamichi Generating Station near Kiowa, Okla.; the 885-MW Tenaska Central Alabama Generating Station near Billingsley, Ala., and the 845-MW Tenaska Gateway Generating Station near Mt. Enterprise, Texas.

All five plants are natural gas–fueled combined-cycle plants. Tenaska said the sale was consistent with its goal of “optimizing the value of existing assets.” The company’s fleet consists of eight power plants totaling 6,700 MW—most of which are owned in partnership with other companies.

Tyr, a wholly owned subsidiary of ITOCHU Corp., and Chubu Electric will become joint owners of 35% of the Georgia, Virginia, Kiamichi, and Central Alabama plants and will own approximately 22% of the Gateway plant. Tenaska affiliates will retain significant ownership and remain the managing general partner and operator of each plant, Tenaska said.

The sale is subject to regulatory approvals and is expected to be final by year-end 2010. Terms were not disclosed.

Source: Tenaska

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