Pennsylvania Natural Gas-Fired Power Plant Changes Hands

---

Researched by Industrial Info Resources (Sugar Land, Texas)--PPL Corporation (NYSE:PPL) (Allentown, Pennsylvania) announced Friday, April 13, that it has completed the previously announced acquisition of AES Ironwood LLC and AES Prescott LLC, both of which are subsidiaries of AES Corporation (NYSE:AES) (Arlington, Virginia), which together owned and operated the 705-megawatt (MW) AES Ironwood combined-cycle natural gas-fired power plant in Lebanon, Pennsylvania.

The plant that commenced operations in 2001 will now be known as PPL Ironwood. The facility's 27 employees, including 16 operations and maintenance staff and 11 management staff, will be retained.

Total consideration for the transaction was approximately $302 million, consisting of a cash purchase price of $85 million, which includes $3 million in working capital, and $217 million of net project indebtedness of AES Ironwood LLC. This was roughly the cost of building the plant. This will not increase the roughly 19,000 MW of power at PPL's disposal, as PPL already had a tolling agreement for most of the plant's power.

The plant's power island consists of Siemens (NYSE:SI) combustion and steam turbine-generator sets with Doosan Heavy Industry heat-recovery steam generators (HRSGs). There are no plans for additional environmental equipment at this time, and although there is room for additional generation equipment, there are no plans to expand at this time.

View Plant Profile - 1018012

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.