Acquisition enhances LS Power's ability to support grid reliability and the energy transition in a high-growth market
NEW YORK, May 8, 2023 - LS Power today announced it has reached an agreement with Brazos Electric Power Cooperative to acquire 2,145 megawatts of natural gas generation in the ERCOT North region of Texas through a special purpose affiliate. The portfolio features dual-fuel capability, meaningful on-site fuel oil storage and firm gas transport and storage arrangements.
"We are excited to add these three projects to our generation portfolio as we continue to evaluate additional expansion opportunities in Texas," said Nathan Hanson, President of LS Power Generation. "These three generation projects we are acquiring provide critical, reliable energy supply to an ERCOT market that is experiencing continued load growth. These projects provide for considerable flexibility and operational redundancy, which are key to balancing the intermittency of renewables and supporting ERCOT's reliability requirements."
The three generation projects are:
Jack County - Two baseload combined cycle blocks totaling 1,297 MW located in Jack County, TX
Johnson County - A 280 MW combined cycle plant located in Johnson County, TX
RW Miller - Four peaking units totaling 568 MW located in Palo Pinto County, TX
Johnson County and RW Miller are dual-fuel resources with significant on-site fuel oil storage that provides important fuel security during periods of gas scarcity, while Jack County benefits from firm gas transport as well as firm storage arrangements.
"These Texas projects add geographic diversity to LS Power's flexible fleet of generation assets and enhances the company's diverse presence in ERCOT, which includes demand response through our CPower Energy Management platform and electric vehicle charging with EVgo," Hanson said.
LS Power's 14,000 MW gas generation fleet (16,000 MW after closing) is a key element of its energy transition portfolio, which also includes more than 3,000 MW of wind, solar, hydro and energy storage, as well as demand response, microgrids, renewable fuels, electric transportation and transmission infrastructure.
"Market volatility and extreme weather require a coherent path toward decarbonization – one that simultaneously embraces the deployment of low-carbon energy resources and the preservation of sufficient conventional energy infrastructure to ensure continued energy security, affordability and reliability," said LS Power CEO Paul Segal. "LS Power's portfolio and priorities reflect this approach."
The transaction is expected to close in early June upon receipt of customary regulatory approvals.
About LS Power
LS Power is a development, investment and operating company focused on the North American power and energy infrastructure sector. Since its inception in 1990, in addition to its development of more than 680 miles of high voltage transmission, LS Power has developed, constructed, managed or acquired in total more than 45,000 MW of power generation, including utility-scale solar, wind, hydro, natural gas-fired and battery energy storage projects. LS Power actively invests in distributed energy resource platforms, such as CPower Energy Management, Endurant Energy and EVgo, as well as Waste-to-Renewable Generation and Fuel initiatives. Additionally, LS Power invests in renewables and energy storage through REV Renewables. Across its efforts, LS Power has raised in excess of $50 billion in debt and equity financing to support North American infrastructure. For more information, please visit www.LSPower.com.
SOURCE LS Power
