Local power plant sold to Canadian company
An independent power plant in Morgan County has been sold to a Canadian energy company for $448 million.
Edmonton-based Capital Power confirmed last week it has purchased the Decatur Energy Center from New York-based LS Power.
The natural-gas-fired electrical generating plant is located off Alabama 20, outside the Decatur city limits.
“The acquisition of Decatur Energy is a significant step in the execution of our growth strategy as it further strengthens our contracted cash flow profiles and increases our geographical diversification,” said Capital Power CEO Brian Vaasjo.
The 795 megawatt power plant is under contract to sell its electricity, and production capacity, to the Tennessee Valley Authority to help the authority meet demand during peak hours.
It also sells purified water, a byproduct of its steam production, to Ascend Performance Material, which uses the de-ionized water in its own production processes.
TVA Public Relations Manager Jim Hopson said Capital Power, as the new owner, would assume responsibility for the power contract, which does not expire until the end of 2022.
In a statement, Capital Power counted the agreement with TVA among the plant’s positive assets — along with significant remaining useful life — saying the facility is well positioned to be re-contracted by TVA at the end of the term.
If not, it said the plant could sell power to PJM Interconnection, a regional transmission organization that coordinates the movement of wholesale electricity throughout much of the eastern United States, including TVA’s area.