Rincon-based Effingham County Power is set to be acquired by an affiliate of a global investment firm and an electric membership corporation.
Global investment firm, The Carlyle Group Inc. (NASDAQ: CG) affiliate Southeast PowerGen, LLC (“Southeast PowerGen”), and electric membership corporation, Oglethorpe Power Corporation, today announced that Oglethorpe, on behalf of a select group of members, has entered into a purchase and sale agreement to acquire Effingham County Power, a 511 megawatt operating combined-cycle generating and transmission facility located in Rincon, GA, from Southeast PowerGen.
This facility represents a critical baseload asset and is one of the most efficient natural gas-fired generating facilities in Georgia. The facility entered commercial operation in August 2003 and consists of two GE combustion turbines and one steam turbine. Financial terms of the transaction were not disclosed.
The acquisition is subject to Oglethorpe Board and Member approvals as well as other customary conditions, including regulatory approvals, and is expected to close in the second quarter of 2021.
“This acquisition of an existing, low-cost and proven facility in Georgia is a good strategic fit for our power supply portfolio. This facility will help meet a group of our Members’ power supply needs as the industry continues to transition and rely more heavily on natural gas and renewables,” said Elizabeth B. Higgins, executive vice president and chief financial officer for Oglethorpe Power.
Upon closing, this will be Oglethorpe’s fifth acquisition of gas-fired generation in Georgia in the last 12 years, totaling almost 3,000 megawatts.