New York-based Argo Infrastructure Partners has bought a 49.9 percent stake in Black Hills Colorado IPP, an indirect subsidiary of South Dakota-based utility Black Hills Corporation, Infrastructure Investor has learnt.
The IPP company is the owner of a 200-megawatt (MW) gas-fired power plant located in Pueblo, Colorado. The purchase price was not disclosed.
The facility, adjacent to Pueblo Airport, sells 100 percent of its generating capacity under a long-term contract to Black Hills' electric utility, in Colorado, supplying more than half of the company's energy needs.
The transaction is the second closed by Argo's AIA Energy North America, a platform Argos launched last April. Last August, Argo completed the acquisition of the Cross-Sound Cable Company, a firm set up exclusively to manage the 330MW Cross-Sound Cable Project, from Brookfield Infrastructure Partners.
Argo had previously secured commitments of over $500 million from Dutch pension manager APG, Californian teachers' pension fund CalSTRS and investment office Crow Holdings to launch AIA Energy North America.
The platform focuses on lower risk energy infrastructure investments in the US and Canada, including midstream, utilities and long-term contracted assets, including power generation.