Oglethorpe Power has completed the acquisition of KGen Murray I and II, for $529m, and two natural gas-fired, combined cycle generating units in Georgia, US.

The two units have a total generating capacity of 1,220MW and will be initially operated independently, but integrated into the system in future.

The acquisition also includes the power purchase and sale agreement between Murray and Georgia Power Company to sell the complete output of Murray I until 31 May 2012.

In purchasing the Murray units, Oglethorpe Power has now officially cancelled the construction of a planned 605MW, combined-cycle generating plant, which was in the siting stage.

The transaction is being funded through a loan from the Rural Utilities Service and other taxable bonds.

KGen Murray I and II is a subsidiary of KGen Power Corporation.