Capital Power Corporation announced that an indirect wholly-owned subsidiary of the company has entered into a definitive agreement that will result in the acquisition of two power plants in the PJM Interconnection, which is expected to be a $2.2 billion transaction.
The Capital Power subsidiary entered into a definitive agreement with Hummel Station Intermediate Holdings III, LLC and Rolling Hills Generating Holdings, LLC, each a subsidiary of LS Power Equity Advisors, LLC, to acquire:
• 100% of the equity interests in Hummel Station, LLC, which owns the 1,124 MW Hummel Station, a combined-cycle natural gas facility in Shamokin Dam, Pennsylvania; and
• 100% of the equity interests in Rolling Hills Generating, L.L.C., which owns the 1,023 MW Rolling Hills plant, a combustion turbine natural gas facility in Wilkesville, Ohio.
The net purchase price of the acquisition is expected to be $2.2 billion, subject to customary post-closing adjustments, including working capital and estimated transaction expenses.
The acquisition is expected to close in the third quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions.
Following the closing of the acquisition, Canada-based Capital Power will be positioned as one of five North American IPPs with over 10 GW of natural gas capacity.
The acquisition is consistent with Capital Power’s strategy to acquire Flexible Generation assets, and consistent with the Company’s growth focus in the U.S. and PJM market, which is the largest and most liquid North American power market, it said.
“Capital Power plans to leverage its deep knowledge and experience in plant operations and power trading and origination to commercially optimize these assets and help drive long-term value as part of its broader fleet.”
