Independent power producer Atlantic Power Corp. said Tuesday that it sold its manchief plant for $45.2 million to Colorado Utilities, Reports Kallanish Energy. The judge recommended approval of Xcel Energy`s application to purchase two Colorado Public Service Co. gas facilities in Colorado (PSCo) taking over The Atlantic Power plant for approximately $45 million. The transaction was one of many proposals Atlantic Power sent to PSCo to review long-term energy supply options. Atlantic Power shares are traded on the New York Stock Exchange under the symbol AT and on the Toronto Stock Exchange under the symbol ATP. For more information, please visit the company`s website at www.atlanticpower.com or contact: Southwest Generation Operating Co. LLC, a subsidiary of investment firm IIF US Holding LP, which owns the Valmont plant. Its price tag is $18.5 million. Federal supervisory authorities authorized the acquisition of Xcel Energy in December 2019 and are expected to remain online until 2038.
In the first plant, Atlantic Power acquires 50% of the shares and the second, the company acquires 30% of the shares. This is the second such operation announced this year between a production company and its AAE partner. Oklahoma Gas and Electric acquired the AES Shady Point coal-fired power plant this year when its long-term PPP expires. An administrative judge of the Colorado Public Utilities Commission recommended that the PUC approve Xcel Energy Inc.`s request to acquire two natural gas facilities in the state to support the construction of renewable energy and remove coal. Earlier this month, Atlantic Power agreed to acquire AltaGas Power`s $20 million stake in two biomass plants in North Carolina and Michigan. Asked by regulators why the comparison does not require Xcel Energy to store gas-powered battery storage facilities, LA WRA replied in writing that “the portfolio was chosen on the basis of available offers.” Manchief is a 300-megawatt state-of-the-art gas plant in Brush, Colorado, which entered service 19 years ago. The installation is shipped by the customer under the terms of the AAE. Justice Steven Denman warned of further reductions in renewable energy without the facilities and said acquisitions were “necessary to integrate significant amounts of renewable production resources” into Xcel Energy`s system. Manchief is a state-of-the-art gas-fired facility of approximately 300 megawatts, which was commissioned in July 2000.
The installation is shipped by the customer under the terms of the AAE. In November 2017, the company submitted several proposals in PSCo`s 2017 all-source solicitation for its longer-term energy needs. In June 2018, the company was informed by PSCo that PSCo had chosen the proposal that it would buy Manchief from the company at the end of the PPP period. Western Resource Advocates, short for WRA, a non-profit environmental organization, signed the purchases in comparison with the company and supervisory authorities in January. Together, the facilities account for less than 2% of the company`s projected carbon dioxide emissions in 2030, the WRA said, adding that the shorter lifespan of the facilities “reduces the risk of failed cost that can result from unexpected early retirement.” Atlantic Power expects to use the proceeds of the sale to reduce the remaining principal of its priority secured loan. “We are pleased to announce this transaction, which is a positive financial outcome for Atlantic Power and also helps our customers meet their power needs,” said James J. Moore, Managing Director of Atlantic Power.