LS Power to Acquire Natural Gas Power Plant From Platinum Equity

810 MW gas plant join LS Power's fleet of assets that support the energy transition

NEW YORK, Jan. 16, 2024 /PRNewswire/ -- LS Power today announced that it has reached an agreement with an affiliate of Platinum Equity to acquire the Hunterstown natural gas-fired power plant in Gettysburg, Pennsylvania.

The 810-megawatt combined cycle gas-fired power generation facility is located in the PJM Interconnection, and the transaction is expected to close in Q2 2024.

"Hunterstown will join LS Power's fleet of flexible gas-fired generation, a portfolio of assets with the dynamic ramping attributes critical to a successful clean energy transition," said Nathan Hanson, President of LS Power Generation.

"Our flexible generation assets provide firm, low carbon and cost effective supply of reliable electricity as well as providing a vital and complementary service in the energy transition, ensuring the lights stay on when renewable resources are unavailable due to their intermittency, or when extreme weather events destabilize the grid," Hanson said.

LS Power operates a more than 16,000 megawatt gas generation fleet that complements its multiple energy transition platforms focused on wind, hydro and solar power, as well as battery energy storage, demand response, microgrids, renewable fuels, electric transportation and transmission infrastructure.

"In order to decarbonize the electric grid in a reliable, affordable and responsible manner, we will need to continue utilizing efficient, flexible gas-fired generation, for which our fleet is well positioned to help accelerate the clean energy transition by managing the intermittency of renewables." said Paul Segal, LS Power CEO.

"This is particularly critical at a time when demand for electricity is growing at the fastest rate in decades – driven by electrification, the proliferation of data centers and a manufacturing renaissance, amidst a background of coal plants retiring and renewables coming online only gradually. With the grid grappling with greater weather extremes and market volatility, a coherent path toward decarbonization embraces both rapid deployment of low-carbon energy resources and maintenance of sufficient natural gas generation  to ensure continued energy security and reliability," Segal said. "This is LS Power's approach, as reflected in our portfolio and priorities."

Accelerating the Energy Transition

LS Power's gas generation fleet spans 12 states and consists primarily of peaking plants along with combined cycle facilities.

LS Power also manages a growing family of energy transition platforms, including:

• REV Renewables, a leader in renewable generation and energy storage
• EVgo, a fast-charging network for electric vehicles, powered by 100% renewable energy
• CPower Energy Management, a leading, national distributed energy resource monetization and virtual power plant provider  
• Rise Light & Power, New York City's largest generator, and developer of clean energy infrastructure
• Primary Renewable Fuels, LLC, a renewable natural gas development and operating platform
• Endurant Energy, a microgrid developer and provider of distributed energy infrastructure solutions
• LS Power Transmission, leading private transmission owner and developer, with 780+ miles of high-voltage transmission lines operating, and 350+ miles and multiple substation under development or construction

Milbank LLP is serving as legal advisor and Guggenheim Securities LLC and Scotiabank are serving as financial advisors to LS Power on the acquisition of Hunterstown.

About LS Power

Founded in 1990, LS Power is a premier development, investment, and operating company focused on the North American power and energy infrastructure sector, with leading platforms across generation, transmission and energy transition solutions. Since inception, LS Power has developed or acquired 47,000 MW of power generation, including utility-scale solar, wind, hydro, battery energy storage, and natural gas-fired facilities. Additionally, LS Power Grid has built 780+ miles of high-voltage transmission, with 350+ miles and multiple grid infrastructure projects currently under construction or development. LS Power actively invests in and scales businesses that are accelerating the energy transition, including electric vehicle charging, demand response, microgrids, renewable fuels and waste-to-energy platforms. Over the years, LS Power has raised $54 billion in debt and equity capital to support North American infrastructure. For information, please visit www.LSPower.com.

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SOURCE LS Power