Joint Venture Group Completing Acquisition of Nuclear Generation Portion of Texas Genco Holdings for $700 million

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Researched by Industrialinfo.com (Industrial Information Resources Incorporated; Houston, Texas). Texas Genco LLC (formerly GC Power Acquisitions LLC), an equal parts joint venture between affiliates of the private investment firms The Blackstone Group (New York, New York), Hellman & Friedman LLC (San Francisco, California), Kohllberg, Kravis Roberts & Company LLC (New York, New York), and Texas Pacific Group (Fort Worth, Texas), has received approval to buy from Texas Genco Holding, a subsidiary of CenterPoint Energy Incorporated (NYSE:CNP) (Houston,Texas), its 30.8% of the 2,708-megawatt (MW) South Texas Nuclear Project, or 834 MW, for $700 million, bringing the final cost for the acquisition of Texas Genco Holdings' portfolio to over $2.9 billion. The approval also allows Texas Genco LLC to acquire 12.6%, or 341 MW, from American Electric Power Company (NYSE:AEP) (Columbus, Ohio). The company has received all regulatory approvals for AEP's portion and expects financial closure for that portion by the end of the second quarter of 2005.

This 1,275 MW is in addition to the 13,286 MW of fossil fuel generation that was acquired in December 2004 (see January 18, 2005, article - Joint Venture Completes Acquisition of Fossil Generation Portion of Texas Genco.) Texas Genco's power generation portfolio capacity will be 14,461 MW, with more diverse options of fuel types. Texas Genco LLC now has capacity at twelve power stations that have a total of 62 generating units.

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