Capital Power Corporation announced the acquisition of the equity interests in the New Harquahala Generating Company, which owns the 1,092 MW Harquahala natural gas-fired generation facility in Arizona, through a 50/50 partnership between Capital Power Investments and an affiliate of a fund managed by BlackRock’s Diversified Infrastructure business.

Approximately $442 million of combined term loans, letter of credit loans and revolving loans related to the Harquahala facility were closed as part of the transaction.

Harquahala is a three-unit gas plant that became operational in 2004. New Harquahala Generating Company is an indirect subsidiary of Talen Energy Supply that owns generating operations in Arizona. In 2016, Talen said it was looking at selling the Harquahala plant — or moving all or part of the generating equipment from its current location to either the Mid-Atlantic or Northeast markets. The moves were being considered largely because the plant, which Talen purchased from MACH Gen, was underutilized at its location in Maricopa County, Arizona, company officials had indicated.

The Harquahala Acquisition and the acquisition of the 1,062 MW La Paloma natural gas-fired generation facility in California were previously announced on November 20, 2023. The acquisition of the La Paloma facility was completed on February 9, 2024. The net purchase price for the two acquisitions attributable to Capital Power is $1.1 billion, subject to working capital adjustments.

Capital Power will be responsible for the operation, maintenance and asset management of the facilities relating to the acquisitions and will receive an annual management fee for the Harquahala facility.

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