13 January 2011 -
PSEG divests Texas power plants
PSEG Power has agreed to sell two 1 GW gas-fired power plants in Texas in separate transactions to a local municipal utility and an entity managed by Wayzata Investment Partners. PSEG Power, a subsidiary of Public Service Enterprise Group, has agreed to divest the Odessa facility in west Texas to High Plains Diversified Energy Corp. and the Guadalupe facility in south Texas to MinnTex Power Holdings, an entity managed by Wayzata. Navasota Energy provided due diligence for Wayzata on the acquisition and is also expected to manage the Guadalupe plant once the acquisition is closed, SparkSpread has learned. The transactions have a combined equity value of $687 million, or $343 per KW, PSEG said in a written statement. There is no debt attached to the assets. "These units are efficient, well-run assets, and there was substantial interest," said Caroline Dorsa, CFO of PSEG. Under the terms of the definitive sales agreement for the Odessa facility, HPDEC will pursue financing to complete the transaction through the sale of municipal bonds. The sale of the Guadalupe facility to MinnTex is not subject to any financing contingencies. Goldman Sachs acted as exclusive financial advisor to PSEG Power in connection with the transaction. Chicago-based Energy Advisory Partners and Texan advisory boutique Protos Energy Advisory advised High Plains. The two plants were originally developed by Texas Independent Energy, a 50/50 joint venture between PSEG and Panda Energy International. PSEG acquired Panda’s 50% stake in the plants in 2004.
19 April 2010 -
Constellation Energy (NYSE:CEG) has recently announced it has signed an agreement with Houston-based Navasota Holdings to purchase two natural gas combined-cycle generation facilities in Texas for $365 million, the equivalent of $332 per kilowatt. The purchase price is subject to closing adjustments. The transaction includes the Colorado Bend Energy Center, a 550-megawatt facility near Wharton, Texas, and Quail Run Energy Center, a 550-megawatt facility near Odessa, Texas.
The proposed purchase would add 1,100 megawatts of capacity to Constellation Energy’s generation portfolio and provides a physical presence of material scale in ERCOT (Electric Reliability Council of Texas), where the company’s large wholesale and retail supply businesses sell a significant amount of power. The acquisition is in line with the company’s previously announced strategy of deploying up to $1 billion over the next 12-24 months to acquire assets in regions where the company’s load obligations exceed its generation capacity. Colorado Bend and Quail Run each have 275-megawatt expansion projects in advanced development, creating the long-term potential to further balance Constellation Energy’s generation capacity and customer supply obligations in ERCOT.
"These modern, well-managed natural gas assets represent an important addition to our generation portfolio and are an ideal fit to support our expanding commercial businesses in Texas," said Mayo A. Shattuck III, chairman, president and chief executive officer of Constellation Energy. "Matching our generation and load-serving businesses in competitive markets should drive greater efficiencies in capital requirements, realized earnings and cash flow."
The transaction is subject to certain state and federal regulatory approvals, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act and standard terms and conditions. It is expected to close in the second quarter of 2010.
Navasota Energy Partners LP is a Houston-based energy development and asset management company that builds and manages power plants throughout the state of Texas.
Citi served as transaction adviser for Constellation Energy; Kirkland and Ellis LLP served as Constellation’s legal counsel. J.P. Morgan acted as Navasota Holdings’ financial adviser; Milbank, Tweed, Hadley & McCloy LLP acted as legal counsel to certain holders of Navasota Holdings.
14 August 2008 - HOUSTON, Aug 14 (Reuters) - Privately held Navasota Energy Partners LP said on Thursday it will build a third natural gas-fired power plant in Texas and expand two existing gas plants to meet the state's need for new electric supply.
Houston-based Navasota expected to obtain a state air permit soon to build the 550-megawatt Madison Bell Energy Center near Madisonville, midway between Dallas and Houston, said Dan Hudson, Navasota Energy's chief financial officer.
Navasota's expanded output, along with a small number of gas and coal-fired units, will help bolster the state's electric reserve margin, which has been shrinking since 2003, when an oversupply of new generation sent wholesale electricity prices tumbling.
While numerous companies continue to evaluate the state's need for power, Navasota is one of only a few moving quickly to build generation.
"Nobody else is moving forward," said Hudson. "A lot of people don't understand the dynamics of this market."
Navasota's third gas plant will be identical to the company's existing facilities, the Quail Run Energy Center in Ector County and the Colorado Bend Energy Center in Wharton County, said Hudson.
Both plants began producing power in 2007 and were expanded this summer to produce 550 MW. The plants were the first new gas-fired generation added in the state since 2003.
Navasota Energy received air permits in May to expand each location by another 275 MW, to a total of 825 MW per site. Operations could begin in 2010.
The Colorado Bend facility, southwest of Houston, supports growing energy demand in the Houston zone while the Quail Run facility, in the state's west power zone, supports growing demand from oil service companies and to support abundant wind generation in that area, Navasota said.
Warnings about the shrinking reserve margin from the Electric Reliability Council of Texas (ERCOT) prompted companies, including FPL Group (FPL.N), Exelon (EXC.N) and Calpine Corp (CPN.N), to propose as much as 12,000 MW of new gas generation in the state. But many developers have not committed to build due to worry about rising wind output, soaring construction costs and financial-market turmoil.
Even so, enough new gas and coal projects are expected to be completed to keep the summer reserve margin above the minimum needed to avoid blackouts through 2012, ERCOT said.
Summer demand reached 62,124 MW in early August, shy of the ERCOT record of 62,339 set in August 2006 and below ERCOT's 2008 forecast of more than 64,000 MW. (Reporting by Eileen O'Grady; Editing by Walter Bagley)
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10 April 2008 - FOR IMMEDIATE RELEASE
NAVASOTA ENERGY ANNOUNCES REVIEW OF STRATEGIC ALTERNATIVES
HOUSTON, TX (April 10, 2008) – Navasota Energy Partners LP (“Navasota” or the “Company”) announced today that it is undertaking a review of monetization alternatives in connection with its wholly owned interests in two newly constructed combined-cycle generating projects, Colorado Bend Energy Center (“CBEC”) located in Wharton, Texas, and Quail Run Energy Center (“QREC”) located in Odessa, Texas. Navasota’s plants are the latest generation additions in ERCOT. The plants employ highly efficient GE turbine technology and are configured to be the most dynamic and rapid response units currently operating in ERCOT.
The development of each plant (QREC and CBEC) has been performed in three individual phases. Phases I, II and III for each plant consist of 275MW, for a total design capacity at each plant of 825MW and a total portfolio capacity of 1,650MW. An overview of the development program is provided here:
Phase I of each plant has been operating since June 2007 (550MW total) Phase II of QREC and CBEC are each in final construction stages and are scheduled for commercial operation in May and June of 2008, respectively (550MW total) Phases III of each plant are in the advanced stages of the required permitting process. Commercial operations are projected for late 2009 for each plant (550MW total)
The Company has engaged JPMorgan as its exclusive financial advisor in connection with this strategic review. For additional information, please contact one of the following individuals:
Sean O’Donnell, (212) 622 – 6824, email@example.com
Dheeraj Verma, (212) 622 – 0666, firstname.lastname@example.org
ABOUT NAVASOTA ENERGY Navasota Energy Partners LP is a Houston-based energy development and asset management company founded in May 2005. Navasota builds and manages power plants throughout the state of Texas. For more information, visit www.navasotaenergy.com. ##
Navasota Energy Partnerships
Montgomery Power Partners, LP ("Montgomery Power") is an affiliate of Navasota Energy. It is an organization formed to pursue natural gas generation, advanced technology development, renewable, and asset management opportunities in the power and energy sector.