LS Power Affiliate Completes Financing and Starts Construction of 665 MW Arkansas Coal Plant
Plum Point Energy Associates, LLC (“Plum Point”), a member of the LS Power Group (“LS Power”) of St. Louis, Missouri, announced today that it has completed financing and begun construction of its 665 megawatt pulverized coal plant in northeast Arkansas. Plum Point’s financing was arranged by Credit Suisse Securities (USA), LLC; Goldman Sachs Credit Partners L.P.; Merrill Lynch & Co. Inc.; Morgan Stanley & Company, Incorporated, and West LB AG, New York Branch.
On financial closing, Plum Point sold tenancy in common interests in the project to the following regional load-serving entities:
East Texas Electric Cooperative, Inc. 7.52%
Missouri Joint Municipal Electric Utility Commission (“MJMEUC”) 22.11%
The Empire District Electric Company (“Empire”) 7.52%
Several municipal utilities are participating in the project through MJMEUC including the City of North Little Rock, Osceola Municipal Light & Power and Piggott Light & Water in Arkansas, and Carthage Water & Electric, Kennett City Light, Gas & Water, Malden Board of Public Works and Poplar Bluff Municipal Utilities in Missouri.
Plum Point retains a 62.85% ownership interest in the project. Plum Point has entered into long term power purchase agreements with Empire for 50 MW and the Municipal Energy Agency of Mississippi for 40 MW, and expects to enter into additional long-term power purchase agreements with regional load-serving entities over the next several months for the balance of its ownership share.
An affiliate of LS Power will manage construction and operation of the project.
The project is being constructed pursuant to a turnkey engineering, procurement and construction contract with Plum Point Power Partners, a joint venture of Zachry Construction Corporation, Black & Veatch, and Gilbert Central Corp, an affiliate of Kiewit Construction Company. Commercial operation is expected to begin in 2010.
The LS Power Group
In addition to the Plum Point Energy Station, members of the LS Power Group have coal fired projects in advanced development in Texas, Georgia and Nevada. Founded in 1990, the LS Power Group is a fully integrated power plant owner, developer and manager.
LS Power Group Contact:
Eric Crawford, Director, Project Development