ATLANTA, June 5, 2003 — Oglethorpe Power Corporation has closed a transaction by which the corporation assumed ownership of two new generating facilities and implemented long-term financing for the plants.
Under the arrangement, Oglethorpe Power is acquiring the recently constructed Talbot Energy Facility near Talbotton, Ga., and the Chattahoochee Energy Facility near Franklin, Ga., through a merger with two companies previously created to own the facilities. The companies, Talbot EMC and Chattahoochee EMC, were formed to own the respective plants on behalf of the Electric Membership Corporations (EMCs) participating in the projects.
Oglethorpe Power was the construction agent for the projects and already was providing operating and maintenance services to the owners.
Oglethorpe Power is assuming ownership of the plants to take advantage of the more favorable financing available to the corporation through the loan guarantee program of the Rural Utilities Service (RUS). The corporation closed today on a $589 million loan guarantee and utilized about $450 million in connection with this acquisition at an interest rate of just under 3.9 percent. The remainder will be drawn down as needed.
The Talbot Energy Facility, a six unit, 618-megawatt (MW) gas-fired combustion turbine project, began commercial operation with the first four units in June 2002. The final two units began commercial operation on May 19, 2003. The Chattahoochee Energy Facility, a 468-MW gas-fired combined cycle facility, began commercial operation in February 2003.
“The timing of today’s transaction could not have been better,” said Thomas A. Smith, president and CEO of Oglethorpe Power Corporation. “We are fortunate to be able to take advantage of a very favorable interest rate environment to implement these transactions on behalf of our member EMCs.”
A Fortune 1000 company, Oglethorpe Power is a $4.8 billion power supply cooperative that manages generating assets and power purchase contracts on behalf of the 39 Electric Membership Corporations it serves. These EMCs provide retail electric service to more than 3.7 million Georgians throughout the state.