The Electricity Generating Public Company Limited (SET: EGCO) has announced that EGCO Compass II, LLC, a wholly owned subsidiary of EGCO domiciled in the United States, entered into a purchase and sale agreement with affiliates of Lotus Infrastructure Partners on September 8, 2023 to acquire the 50% ownership interest in a portfolio of three operating natural gas-fired combined cycle power facilities (CCGT) comprising 1,304 MW of capacity which are situated in the Northeast of the U.S. (the Compass Portfolio) consisting of Marcus Hook Energy, L.P. (Marcus Hook), a 912 MW CCGT facility located in the state of Pennsylvania; Milford Power, LLC (Milford) and Dighton Power, LLC (Dighton), which hold 205 MW and 187 MW facilities respectively in the state of Massachusetts.
Marcus Hook, Milford, and Dighton are all situated in strategic locations proximate to major metropolitan load centers near the cities of Philadelphia, Boston, and Providence. These areas have high barriers to entry for new capacity sources and robust energy transition policies that require both firming capacity and energy support. The Compass Portfolio benefits from a unique capacity sales contract at Marcus Hook for the majority of its capacity with the Long Island Power Authority (LIPA) while the balance is sold in PJM market. The capacity sales arrangements at Milford and Dighton are settled through the ISO-NE market. In addition to capacity sales, these facilities also sell energy and ancillary services into the market.
This investment was approved by the Board of Directors of EGCO in the Meeting No. 13/2023 on July 29, 2023. The Transaction closing is subject to successful completion of all closing conditions.
The investment in the Compass Portfolio will be an accretive investment which is aligned with EGCO’s strategic objective of acquiring and operating high quality gas fired power facilities. This investment also represents a further enhancement of EGCO’s growing presence in the US power markets where it is seeking to play a role in the country’s energy transition goals.