Tenaska Closes $780 Million Financing for Natural Gas-fueled Power Plant in Pennsylvania

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Apr 19, 2016, 04:01 ET

OMAHA, Neb., April 19, 2016 /PRNewswire/ -- Leading independent energy provider Tenaska closed approximately $780 million in commercial financing today for the Tenaska Westmoreland Generating Station, a 925-megawatt (MW) natural gas-fueled power plant project near Pittsburgh.

Since its founding in 1987, Tenaska has raised approximately $14.4 billion in capital through bank facilities, capital market transactions, corporate facilities and equity, supporting the successful development of approximately 10,000 MW of natural gas-fueled and renewable power projects. The company has approximately 2,500 MW in pre-financing development.

"Tenaska has a reputation for strong power projects that meet the needs of an evolving industry," said Dave Kirkwood, vice president and treasurer. "We have the expertise to advance projects from concept into operation, and we have long-standing relationships with financial institutions to support that."

MUFG Union Bank, N.A., BNP Paribas, Citigroup Global Markets, and Industrial and Commercial Bank of China, Limited led the bank group for the financing.

Kirkwood added that the forward capacity market in PJM Interconnection, which Tenaska Westmoreland will serve, and five-year revenue hedging were also key to the success of the financing. PJM coordinates the delivery of power in all or parts of 13 eastern states and the District of Columbia.

The Tenaska Westmoreland project is owned by Tenaska Pennsylvania Partners, LLC, which is comprised of affiliates of Tenaska and Diamond Generating Corporation (DGC), a subsidiary of Tokyo-based Mitsubishi Corporation.

"DGC is pleased to be part of this important project in Pennsylvania and is committed to providing reliable, clean electricity for the region," said CEO Satoshi Hamada. "The project represents a significant investment alongside a valued partner."

The relationship with Tenaska includes investments in natural gas-fueled power generating facilities in Alabama, Georgia and Texas.

"Achieving financial closing for Tenaska Westmoreland illustrates our ability to develop and advance market-driven power projects," said Greg Kelly, president of Tenaska's Development Group. "We are pleased to reach this milestone and look forward to the next phase of the project."

Construction began earlier this year, with commercial operation targeted for 2018. Black & Veatch is the engineering, procurement and construction (EPC) contractor for the project.

"Black & Veatch's experience in power plant and infrastructure construction, combined with Tenaska's record of success in power plant development and operation, will help ensure that Tenaska Westmoreland is a safe, efficient and reliable power plant," said Nick Borman, Tenaska senior vice president of engineering and construction.

"Black & Veatch is leveraging its global knowledge and experience in delivering another advanced combined-cycle project," said Steve Edwards, chairman and CEO of Black & Veatch. "We are focused on optimizing the schedule and execution on the project to support Tenaska in safely delivering its customers clean, efficient and reliable energy supplies."

Mitsubishi Hitachi Power Systems will provide the two natural gas turbines for Tenaska Westmoreland.

About Tenaska
Tenaska, based in Omaha, Nebraska, is one of the leading independent power producers in the United States, with regional offices in Dallas, Denver, Pittsburgh, Philadelphia, Boston and Calgary, Alberta and Vancouver, British Columbia, Canada. Forbes magazine ranks Tenaska among the 25 largest privately held U.S. companies. Tenaska and its affiliates have developed approximately 10,000 megawatts (MW) of natural gas-fueled and renewable power generation and manage operations for approximately 7,000 MW of power generation consisting of nine power plants.

Tenaska formed Tenaska Pennsylvania Partners, LLC to build, own and operate the Tenaska Westmoreland Generating Station. An affiliate of Tenaska serves as the managing partner.

Tenaska affiliates also market natural gas and electric power and provide energy risk management services. Tenaska is involved in asset acquisition, natural gas fuel supply and transportation systems, and electric transmission development. For more information about Tenaska, visit www.tenaska.com.

About Diamond Generating Company
As a wholly owned subsidiary of Mitsubishi Corporation, one of the world's most diverse enterprises, with over 600 subsidiaries and affiliates worldwide, Diamond Generating Corporation (DGC) has developed a reputation for financial strength and long‐term stability. DGC's expertise in power development and generation, including greenfield development, acquisition, fuel procurement, financing, construction, operations services and asset management has resulted in a portfolio of efficient, state‐of‐the‐art, environmentally sound generating facilities. Headquartered in Los Angeles, DGC currently owns 11 operating power generating facilities and one facility under construction around the U.S. totaling about 6,500 megawatts (MW), with about 2,550 MW of net equity. Of these projects, two are wind projects and the remainder of the portfolio is natural gas-fueled.

SOURCE Tenaska