SMITHTON, Pennsylvania – 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 Smithton in Westmoreland County.
“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.
Tenaska Westmoreland is the 18th project that Tenaska has developed and financed. Since its founding in 1987, the company has successfully developed approximately 10,000 MW of natural gas-fueled and renewable power projects. Tenaska has approximately 2,500 MW in additional projects in pre-financing development.
Tenaska Pennsylvania Partners, LLC, an affiliate of Tenaska, will own the Tenaska Westmoreland project.
When construction is complete, the project will be able to provide enough power for approximately 925,000 homes in the PJM Interconnection market, which coordinates the delivery of power in all or parts of 13 eastern states, including Pennsylvania, and the District of Columbia.
Kirkwood said that the forward capacity market in PJM – which guarantees revenue for reliable power generators – and five-year revenue hedging were also key to the success of the project financing.
“Development and operation of power generating facilities has been Tenaska’s core business since its founding in 1987,” said Monte Ten Kley, director of development. “We are pleased to be continuing that tradition in Westmoreland County, where leaders appreciate the economic benefits of large projects like this.”
Tenaska Westmoreland will be located south of Interstate 70, between exits 49 and 51 in South Huntington Township.
Construction began earlier this year, with commercial operation targeted for 2018. Black & Veatch is the engineering, procurement and construction (EPC) contractor for the project. The EPC contractor performs design, completes engineering and manages construction of the plant.
“Tenaska typically encourages its contractors to hire and contract locally whenever possible, and that commitment continues at Tenaska Westmoreland,” said Vasu Pinapati, project director, engineering and construction. “We look forward to bringing these opportunities to the community as we construct this safe and environmentally responsible power project.”
Mitsubishi Hitachi Power Systems will provide the two natural gas turbines for the project.
The Tenaska Westmoreland project is expected to create more than 300 direct jobs, on average, over the three-year construction period and to generate millions of dollars in tax payments over the life of the plant.
Additional information is available at www.TenaskaWestmoreland.com. Information about job opportunities will be posted when available.
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.