Wednesday, April 2, 2008

Did you know New York City buys electricity from Goldman Sachs?

NEW YORK, NY – The Goldman Sachs Group, Inc. (NYSE: GS) announced that it has agreed to acquire for $456 million in cash El Paso Corporation's (NYSE: EP) interests in East Coast Power L.L.C., which owns the Linden cogeneration facility located in Linden, New Jersey. Approximately $600 million of non-recourse, project-level debt will remain outstanding at East Coast Power L.L.C. and its subsidiaries following the transaction closing. The transaction is subject to regulatory approval and is expected to close within three months.

"We are pleased to re-enter the power generation market, especially with assets of this quality," said Richard Ruzika, co-head of Global Commodities at Goldman Sachs. "As we found in our joint venture with Constellation Energy, owning generation assets enhances our power-trading capabilities and opportunities."

The gas-fired, 940-megawatt Linden cogeneration facility is directly adjacent to Staten Island. Approximately 80% of power produced by the facility is sold into the New York City market, with the remainder sold to the New Jerseymarket. A substantial portion of the plant's output is sold under long-term contracts to established, A-rated counterparties.

No comments: