 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
For Immediate Release: |
Contact: |
ENERGY INVESTORS FUNDS AWARDED CONTRACTS BY PACIFIC GAS & ELECTRIC TO BUILD TWO POWER PLANTS IN CALIFORNIA
BOSTON, MA (April 19, 2006) Energy Investors Funds (“EIF”), an established private equity fund manager that invests in the U.S. energy and electric power sector, today announced that it was awarded contracts by Pacific Gas and Electric Company to build two power centers in Fresno County, California. The financial terms were not disclosed.
The first, Panoche Energy Center, will operate at a 400 megawatt capacity. The second, Bullard Energy Center, will operate at a 200 megawatt capacity. Each of the new power plants will be simple cycle and fueled by natural gas, and will utilize the latest technology designed to maximize efficiency and minimize environmental impacts.
EIF’s United States Power Fund II, L.P. owns 100 percent of each project, and will fund the development and permitting of both facilities. Construction at the two power centers will begin in 2007, with the operational dates for both slated for Summer 2009.
Herb Magid, Managing Partner of EIF and Keith Derman, Senior Associate, led the EIF deal team on bidding the contracts.
“These new power plants will allow PG&E to meet the increasing energy demands of its customers,” said Herb Magid. “We are pleased that the new infrastructures will reflect the latest innovations in energy efficiencies and technological advances in the utilities sector.”
The contracts are subject to approval by the California Public Utilities Commission (CPUC). PG&E filed its application for approval of the new contracts this month and anticipates that the CPUC would issue its decision by the end of 2006.
Keith Derman said, “PG&E should be applauded for running a transparent and judicious Request for Offers (RFO) process where private capital like EIF is afforded the same opportunities as an incumbent.”
Background
On July 9, 2004, PG&E submitted its long-term resource plan with the CPUC and outlined steps to meet the long-term electricity needs of its customers, including the RFO.
Through the RFO process, the company sought to add approximately 2,200 megawatts of generation facilities within its service area between 2008 and 2010. The submission deadline for initial bids was April 27, 2005. PG&E then established a short list of qualified projects and began discussions with various bidders to select the best-fit technology and least-cost energy alternative.
Both EIF projects were awarded contracts in April of this year.
About Energy Investors Funds
Energy Investors Funds was founded in 1987 as the first private equity fund manager dedicated exclusively to the independent power and electric utility industry. Our consistent, proven investment strategy is to create geographically and technologically diversified portfolios of electric power-related assets that provide superior risk-adjusted equity returns with current cash flow and capital appreciation. As investment managers we seek to mitigate commodity risk (fuel and electricity) by focusing primarily on acquiring power assets with long-term off-take contracts. Energy Investors Funds has mobilized over $1.75 billion in capital, and currently manages six private equity funds from its offices in Boston, New York, and San Francisco. These funds have made over 80 diversified investments, with a combined underlying asset value exceeding $5 billion. For more information visit www.eifgroup.com.
