NuCoastal Power Announces a Strategic Investment by ArcLight Capital

Founded in 2005, NuCoastal Power is a power generation company whose strategy has been to acquire and re-develop a portfolio of five "mothballed" power plants in the capacity-constrained Texas ERCOT southern zone. Arclight's capital commitment to NuCoastal Power is sufficient to fund the development of the portfolio.

Permitting for all of the development plants has been completed, as well as procurement of most of the major equipment needed to transform these acquisitions into high-efficiency low-cost producers. Of the five power plant sites, four of the plants are being repowered as gas-fired plants; the fifth plant will be repowered as a solid-fuel (petroleum coke) plant. In total, the portfolio represents 1,500 MW of capacity.

NuCoastal Power's first gas-fired repowering project inVictoria, Texas is scheduled to be on-line in the fourth quarter of 2008 and will benefit from a six-year tolling agreement. Construction is expected to begin on two other gas-fired plants -- one located inCorpus Christi and one located inMcAllen -- by the end of 2008. TheCorpus Christi plant is anticipated to be complete in 2009 and theMcAllen plant is expected to be complete in 2010. Development on the fourth gas-fired plant will begin in 2009 with a 2011 expected completion date. In August 2007, the Texas Committee on Environmental Quality issued an air permit with respect to the solid-fuel plant atPoint Comfort. Fabrication on a new circulating fluidized bed combustion boiler and detailed engineering work has commenced. The anticipated project completion date is the end of 2012.

According to Roy Hart, Chief Executive Officer of NuCoastal Power, "We are extremely bullish on the market dynamics of the southern zone ERCOT market. Given the attractive heat rates of our gas-fired plants and the low cost fuel supply for our solid-fired plant, we believe that the addition of the resources brought by ArcLight completes the picture. Their extensive financial, project development and execution experience fits well with the innovative approach brought by NuCoastal Power to this market opportunity."

Dan Revers, the managing partner of ArcLight added, "ArcLight is excited about the opportunity to develop and construct a sizeable portfolio in the ERCOT market with the capable and experienced development team at NuCoastal. NuCoastal's repowering strategy represents a value-added approach to ArcLight's existing development strategy".

About Us

NuCoastal Power is a power generation company formed to acquire and re-develop a portfolio of five "mothballed" power plants in the Texas ERCOT southern zone. NuCoastal Power is based inHouston, Texas.

ArcLight Capital is one of the world's leading energy investment firms with more than $6.8 billion under management. ArcLight's investment team has extensive energy investing experience, industry relationships, and asset level knowledge. ArcLight is headquartered inBoston, Massachusetts with offices in New York City,London andLuxembourg. More information about ArcLight can be found at http://www.arclightcapital.com.

SOURCE NuCoastal Power Holdings, LLC

Copyright © 2009, PRNewswire
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Copyright © 2009, NewsBlaze, Daily News

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