Houston, TX, Feb. 2, 2006 — Direct Energy announced that it has successfully acquired 100 percent of the partnership interests in Tenaska III Texas Partners (TP) for $47.5 million in cash. TP owned the Paris Energy Center, a 244-megawatt gas-fired combined-cycle power plant located in Paris, Texas, in the northeast region of the state. The facility is debt free, and became a 100 percent merchant plant on February 1, 2006.
Paris Energy Center represents the third power station that Direct Energy has bought in Texas since 2004, following the acquisitions of Bastrop Energy Center near Austin, Texas, and the Frontera Energy Center, in Mission, Texas. As a result, Direct Energy can now meet approximately 31 percent of its current peak demand in Texas from its own assets.
Paris Energy Center is designed to run flexibly and can provide mid-merit and fast-response peaking capacity. This type of asset complements well Direct Energy’s existing portfolio and is aligned with Direct Energy’s retail load in Texas, where the company has about 900,000 residential and commercial customers in Houston, Dallas/Fort Worth, Midland-Odessa and throughout South and West Texas.