Energy Investors Funds’ US Power Fund, L.P.
Acquires Black River Energy, L.P.
New Assets Generate One-Third of the Total Power of Hawaii’s Big Island

NEW YORK, NY (June 28, 2004) – Energy Investors Funds Group, an established private equity fund manager that invests in the energy and electric power sector, today announced that its US Power Fund, L.P. has acquired Black River Energy, L.P. and its assets including Black River Generation, located in Watertown, New York and Hawaii-based Hamakua Energy Partners. The financial terms of the transaction were not disclosed.

Black River Generation is a 50MW coal and pet coke facility located on Fort Drum in Watertown, New York.  The facility also has permits to burn tire-derived fuel, wood chips, and pelletized cardboard and uses CFB – Alstrom technology.  Select Energy, a subsidiary of Northeast Utilities, has entered into a three-year power contract with Black River Generation.

“Black River Energy’s assets offer the stability of long-term power purchase agreements and stabile cash flow, community support, and in the case of Hamakua, 155 acres for plant expansion,” said Terence Darby, EIF Management, LLC’s managing partner who led the deal team with Michael Gee, Vice President. 

Located on the Big Island of Hawaii, Hamakua Energy Partners is a naphtha-fueled 60MW combined cycle power plant.  Hamakua – the largest independent power producer and the most fuel-efficient plant on the Big Island – provides approximately one-third of the island’s power needs.  A power purchase agreement between Hamakua and Hawaii Electric Light Company, Inc. is in effect until 2030.

“This acquisition fits well into the US Power Fund portfolio,” adds John Buehler, managing partner. “Hamakua, like other portfolio investments including Astoria Energy, serves an energy constrained market.  In today’s deregulated environment, the public-private energy partnership is becoming a major factor in power generation – especially in tight energy markets.”

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