Alabama Power has officially acquired the Calhoun Generating Facility in an effort to improve reliability.
The Calhoun facility, located in Eastaboga, Alabama, includes four simple cycle combustion turbine units that can operate on either gas or oil, having onsite oil storage as a backup fuel source. Constructed in 2003-2004, the units have a combined maximum generation capacity of 743 MW.
Alabama Power officially took over plant ownership on Sept. 30. The acquisition of the plant by the utility was approved by the Alabama Public Service Commission following a thorough hearing and review process. Costs associated with the acquisition will be recovered through cost recovery mechanisms set by the commission.
In its petition to state regulators in 2021, Alabama Power said the company has a “reliability-driven need for additional resources in the winter from 2022 through 2025 and from 2028 forward.”
Calhoun was formerly owned by Harbert Power Fund V, LLC, an affiliate of Harbert Management Corporation. All the employees working at the plant have joined Alabama Power as the company takes over operations.
According to the petition, the acquisition of Calhoun would fill the capacity need resulting from the retirement of the James M. Barry coal-fired Unit 5 at the end of 2023.
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