Monday, August 3, 2009

Oglethorpe Power To Purchase Hartwell Peak Generating Plant

/PRNewswire/ -- Oglethorpe Power Corporation has notified the partners of the Hartwell Energy Limited Partnership of the Corporation's intent to purchase the 318 megawatt Hartwell plant, an oil and gas-fired peaking facility in northeast Georgia. The purchase price is $148.5 million, including approximately $54.0 million of existing project level debt, plus a working capital and fuel oil adjustment to be determined at closing. Completion of the sale is expected in the third quarter of 2009.

Oglethorpe Power already has a power purchase arrangement with the plant's owners to purchase the output of the plant through May 2019. As part of that arrangement, Oglethorpe Power has the right of first refusal if the plant is sold. In April 2009 International Power announced that it, together with its partner, had reached agreement to sell the Hartwell plant to Southern Power Company, subject to a decision by Oglethorpe Power on whether to purchase the plant itself under its right of first refusal.

In exercising the right to purchase the plant, Oglethorpe Power cited its existing power purchase agreement involving the plant and the need by its Member EMCs for additional peak generating capability following the termination of the existing arrangement.

"Our analysis shows that purchasing the Hartwell plant is a good strategic fit for Oglethorpe Power and our Member Systems," said Elizabeth B. Higgins, executive vice president and chief financial officer.

The purchase of the plant by Oglethorpe Power will be subject to applicable regulatory approvals and lender consent.

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