International in US$856.4m Bid for US Plants

UK-based International Power has agreed to buy a 1,857MW portfolio of power facilities in the US for US$856.4m, to expand its presence in the country.

The company is buying the plants in the US power regions of Pennsylvania, New Jersey and Maryland (PJM) and Midwest Independent System Operator (MISO) from Tenaska Power Fund and an affiliate of Warburg Pincus.

"This acquisition of modern peaking plants in attractive power markets complements our existing portfolio of power stations in North America and improves further our ability to benefit from tightening reserve margins in the region," says CEO of International Power Philip Cox.

The PJM power pool is the largest power region in the US, covering 11 states including Pennsylvania, New Jersey, Maryland, Delaware, and Virginia.

MISO covers an area that encompasses 15 states in the mid-west and borders PJM in the states of Pennsylvania, Ohio, Indiana and Illinois.

By Ozge Ibrahim