AltaGas Power Holdings Inc. completed the acquisition of Blythe Energy LLC, which owns a 507 MW natural gas-fired combined cycle plant and a related 230 kV 67-mile electric transmission line in Southern California, for $515 million.
The Blythe Energy Center is contracted under a power purchase agreement through to July 2020 with Southern California Edison (SCE). Contract provisions match PPA revenues to all major plant costs.
The Blythe Energy Center is well positioned upon expiry of the PPA in 2020 to contract with other market participants due to its location and ability to serve both the California Independent System Operator (California ISO) and Desert Southwest markets.
The demand for cleaner energy sources, including natural gas, continues to be strong across North America and is a key driver for potential future growth of the Blythe Energy Center. Blythe is located on an owned 76-acre site that provides a geographic footprint for potential future expansion.
The acquisition is expected to be accretive to earnings and cash flow per share in 2014, the first full year of ownership, and is expected to add about $50 million in incremental contracted EBITDA per year