BATON ROUGE, La., April 29, 2011 /PRNewswire/ -- In a move designed to boost generation capacity and provide for the long-term energy needs of its customers, Entergy Louisiana, LLC today announced it has completed its acquisition of Acadia Energy Center Power Block 2.
The company purchased the modern and efficient approximately 580-megawatt combined-cycle gas-turbine (CCGT) generation resource from Acadia Power Partners, LLC, an independent power producer, for approximately $300 million. The purchase price is considered particularly attractive when compared with building a similar CCGT facility, which is estimated to cost in excess of $700 million.
"We view this as a sound investment to help meet the future power demand of our customers," said Bill Mohl, president and chief executive officer of Entergy Louisiana, LLC. "Acadia Power Block 2 is an important addition to our generation fleet that will provide needed and beneficial long-term electricity supply to our customers across the region."
The purchase includes Acadia Energy Center's Power Block 2 and 50 percent of the facility's common assets. In a separate transaction on Feb. 24, 2010, Cleco Power LLC acquired Acadia Energy Center's Power Block 1 and the other 50 percent interest in the facility's common assets. Cleco Power will serve as the operator of the entire facility.
Located south of Eunice, La., in the heart of Acadiana, the Acadia Energy Center began commercial operation in 2002. The natural gas-fired plant uses modern pollution controls and CCGT technology to produce highly efficient, clean and reliable power. The plant is also well-suited for cost-effective load-following generation and, at currently forecasted gas prices, base load operation.
"The addition of a clean, efficient CCGT power plant fits in with our strategy to develop diverse and modern long-term resources that will deliver economical and reliable energy to customers," Mohl said. "It also furthers Entergy's position as one of the cleanest electric utilities in the country."
Entergy's generation fleet emits significantly less carbon dioxide, nitrogen oxide and sulfur dioxide than the average utility in the country.
Entergy Louisiana will implement several upgrades to incorporate the plant into its system. Planned upgrades include the construction of a new natural gas pipeline that would be dedicated solely to Power Block 2, allowing it greater operational flexibility independent of Power Block 1, and transmission improvements that will benefit Power Block 2 and the transmission system. Some of the transmission upgrades are in progress as part of Entergy's 2011-2013 transmission construction plan to enhance reliability for the region.
"With the transmission upgrades, which we estimate will be complete by 2013, the addition of the Acadia Power Block 2 facility is expected to improve power flows and ease the loading on the high-voltage lines stretching across the Atchafalaya Basin," said Mohl. "The reliability benefits should be significant for customers in Acadiana and across the region, as well as for other users of the transmission system."
Entergy's Louisiana utility companies serve more than one million customers through the operating companies Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. With operations in southern, central and northeastern Louisiana, the companies are part of Entergy Corporation's electric system serving 2.7 million customers in Louisiana, Arkansas, Mississippi and Texas.
SOURCE Entergy Corporation