Tenaska in $1.6bn power plant purchase

The Nebraska private equity firm has acquired a collection of assets from Constellation Energy a year after rounding up $838m in a debut fund.

Tenaska Capital Management has spent $1.635 billion to acquire six power plants from publicly traded Constellation Energy, the firm  announced on Wednesday.

The transaction involves 3,145 megawatts across six natural gas-generating plants, including two in Illinois, two in Virginia, one in California and one in Texas.

“This acquisition maintains our investment philosophy of focusing on quality facilities that are well-positioned to serve key markets,” said Paul Smith, senior managing director of Tenaska Capital Management, in a statement. “The plants are clean, efficient and strategically located.”

According the statement, the two companies expect the transaction to close by early 2007. The deal is subject to regulatory approvals and standard closing conditions.
Tenaska raised $838 million in a debut private equity fund last year. The firm is affiliated with Nebraska-based Tenaska Energy. Formed in 2003, the firm most recently bought a 315-megawatt plant in Virginia for $38 million and a 308-megawatt power peaking facility in Chicago for $89 million last year.