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For Immediate Release: |
Contact: |
Energy Investors Funds Acquires Additional Interest In Masspower
United States Power Fund Increases Total Firm Investment to 30 Percent
BOSTON, MA (October 21, 2004) – Energy Investors Funds, an established private equity fund manager that invests in the energy and electric power sector, today announced that the United States Power Fund, L.P. has acquired a 12.5 percent general partner interest in MASSPOWER from El Paso Corporation.
MASSPOWER is a 270 megawatt (gross) gas-fired cogeneration plant located in Springfield, MA. The facility has been in operation since 1993 and has four long-term power purchase agreements with Boston Edison, Commonwealth Electric Company, and Massachusetts Municipal Wholesale Electric Company, with the remaining energy sold on the New England spot market. MASSPOWER also has long-term fuel supply agreements in place with pricing indexed to the power purchase agreement energy pricing.
In 1997, Energy Investors Funds’ Project Finance Fund III, L.P. acquired a 17.5% interest in MASSPOWER.
“We welcome this opportunity to increase our investment in an asset that is well managed and has a solid operational history,” said Jonathan January, Energy Investors Fund’s partner who led the deal team along with Rick Carlson. “This acquisition fits perfectly with EIF’s established mandate to invest in projects that offer current cash flow supported by long-term, indexed fuel agreements.”
“This acquisition allows us to increase our role as a general partner of MASSPOWER,” adds John Buehler, managing partner. “Energy Investors Funds seeks out opportunities like these that allow us to adhere to a philosophy of hands-on financial, operational, and strategic management.”
