Canada's Capital Power to acquire 50.15% stake in US gas power plant

Canada's Capital Power has signed an agreement to acquire a 50.15% stake in the Frederickson 1 gas-fired power plant in Washington from Atlantic Power & Utilities for $100mn, it said on October 10. The other 49.85% is owned by Puget Sound Energy (PSE).

Capital Power will finance the transaction using cash on hand and its credit facilities. The transaction is expected to close in the fourth quarter of 2023, subject to customary regulatory approvals and other closing adjustments and conditions.

Frederickson 1 is a 265 MW natural gas-fired combined-cycle generating facility in Pierce County, Washington. Capital Power will operate and maintain the facility and receive an annual management fee under the operating arrangement with PSE.

"Consistent with our mid-life natural gas strategy, this acquisition expands our portfolio of dispatchable assets in key markets that support the energy transition by providing reliable, affordable and flexible power while renewables grow and decarbonisation solutions develop," said Avik Dey, CEO of Capital Power.

Capital Power owns approximately 7.5 GW of power generation capacity at 29 facilities across North America. Projects in advanced development and construction include 224 MW of renewable generation in Alberta and North Carolina, 512 MW of incremental natural gas combined cycle capacity from the repowering of Genesee 1 and 2 in Alberta, and approximately 350 MW of natural gas and battery energy storage systems in Ontario.