SOURCE: Quantum Utility Generation
HOUSTON, TX--(Marketwire - Feb 1, 2013) - Quantum Utility Generation, LLC ("QUG") is pleased to announce that it has entered into a definitive agreement with affiliates of Atlantic Power Corporation ("Atlantic") to acquire Atlantic's 100% equity interests in three combined cycle natural gas fired generation and cogeneration projects located in Florida. The projects being acquired total approximately 400 megawatts of generation capacity, and consist of Auburndale Power Partners, Limited Partnership, Lake Cogen, Ltd., and Pasco Cogen, Ltd.
A core element of QUG's business model is to focus on the company's ability to help meet the long-term generation resource needs of its utility customers through the structuring of attractive commercial propositions tied to efficient, cost-effective physical generation assets. In acquiring these operationally flexible combined cycle plants, QUG's Southeastern portfolio will grow to approximately 1,300 net megawatts of clean, efficient generation assets. QUG, through this acquisition, is even better positioned to assist regional utilities in meeting their resource planning and operating needs over the coming years.
"We appreciate the opportunity to work with Atlantic on this acquisition. The physical quality of the assets, the longstanding track record of effective maintenance and the highly capable staffing of these Florida assets is testament to Atlantic's commitment to operational excellence. As two of the existing power contracts supporting these assets come to an end this year, we believe that our ability to position these resources as part of a highly attractive portfolio of regional generation enhances the value proposition that QUG can offer to utilities both in Florida and in other accessible regions of the Southeast U.S.," commented Larry Kellerman, CEO of QUG.
The sale is subject to customary closing conditions and approvals, including approval from the Federal Energy Regulatory Commission, and is expected to close in the first quarter of 2013.
Quantum Utility Generation, LLC is an operating company based in Houston, Texas that was established to invest in the North American power generation space, and is co-funded by Quantum Energy Partners, a private equity fund with more than $6.5 billion in commitments, the Canada Pension Plan Investment Board, which manages $170 billion on behalf of the Canada Pension Plan, and management. QUG's approach to investments and operations capitalizes on the deep industry experience of our team to provide investor-owned and public power customers with a unique set of physical, financial and commercial options through structured transactions involving our portfolio of assets. QUG's current portfolio interests include the Quantum Choctaw Power project, a 760 MW combined cycle generation facility in Mississippi, the Hopewell and Portsmouth projects, two 120 MW scrubbed coal-fired plants in Virginia, and advanced stage, contracted development projects involving solar and wind generation. For more information, please see our website at www.quantumug.com.