A New York-headquartered group that pursues investments in North American power and energy infrastructure said it has a deal to acquire a natural gas-fired power plant near Houston, Texas.
LS Power, which also develops and operates energy facilities, on August 6 said it has entered into a definitive agreement with Constellation to acquire the Brazos Valley Energy Center (formerly known as the Jack Fusco Energy Center), a 606-MW combined-cycle facility. The transaction is expected to close in the fourth quarter of this year, subject to regulatory approval.
“Texas is experiencing exceptional economic growth as its pro-business policies continue to attract companies, investment and jobs from across the country,” said Paul Segal, CEO of LS Power. “That growth is driving rapidly increasing demand for electricity, while new generation projects can take years to develop and bring online. Acquiring and optimizing proven assets is one of the fastest and most cost-effective ways to meet that need, and natural gas is well-positioned to provide the reliable, around-the-clock capacity the market requires. This acquisition reflects our ‘more of everything’ approach and our commitment to delivering the affordable, reliable power needed to sustain Texas’ growth.”
Regulatory Divestiture Commitment
LS Power on Thursday said the transaction satisfies a regulatory divestiture commitment tied to Constellation’s acquisition of Calpine, with whom LS Power has had several bilateral transactions to date. LS Power in March of this year said it would acquire a 4,353 MW portfolio of five gas-fired generation assets in PJM from Constellation.
The U.S. Justice Department’s Antitrust Division, together with the attorney general of Texas, on December 5 of last year said it would require divestiture of six power plants in Delaware, Pennsylvania, and Texas to resolve antitrust concerns arising from Constellation’s acquisition of Calpine. The Antitrust Division had filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed acquisition. At the same time, the Division filed a proposed settlement that it said, upon court approval, would resolve the Division’s competitive concerns.
The acquisition announced Thursday expands LS Power’s generation fleet in the Electric Reliability Council of Texas (ERCOT) territory, one of the fastest-growing power markets. The company said its U.S. operating fleet will total about 14.1 GW of generation capacity after closing of its pending transactions with Constellation.
LS Power, founded in 1990, has a history of developing and/or acquiring and operating energy infrastructure in Texas and around the country, including both power generation stations and transmission infrastructure. The company also continues to advance a pipeline of uprates to existing facilities and greenfield projects across the U.S. The company on Thursday said since inception it has developed or acquired 50,000 MW of power generation, including utility-scale solar, wind, hydro, battery energy storage, and natural gas-fired facilities. LS Power Grid, the company’s transmission business, operates seven transmission utilities, and has built more than 780 miles of high-voltage transmission, with another 400-plus miles currently in construction or development.
—Darrell Proctor is a senior editor for POWER.
