Capital Power of Canada has announced that it is acquiring two gas-fired power plants in California and Arizona for a total of $1.1 billion. Following completion of the deal, Capital will become the fifth largest non-regulated gas-powered generator in North America.
The plants being acquired are the 1062 MW La Paloma power plant in Kern County, California, owned by CXA La Paloma, and the 1092 MW Harquahala power plant in Maricopa County, Arizona, owned by New Harquahala Generation Company, a newly-formed partnership between Capital Power Investments and a fund managed by BlackRock’s Diversified Infrastructure business.
The acquisition is expected to generate around $265 million in core profit for the 2024-28 period, and is estimated to be 8 per cent accretive. The deal is expected to close in Q1 2024.
Sandra Haskins, CFO of Capital Power, said: “The acquisition of La Paloma and the partnership in Harquahala offer an attractive entry point in the Western Electricity Coordinating Council (WECC) market, are immediately accretive, and maintains our investment grade credit ratings and balance sheet strength.”