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A look at AES Ohio's generation assets to be sold to Rockland Capital LLC

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A look at AES Ohio's generation assets to be sold to Rockland Capital LLC

DPL Inc. in December 2017 announced it had entered an agreement to sell a number of its generation assets to private equity investor Rockland Capital LLC subsidiary Kimura Power LLC.

The assets, most of which are in Ohio, have a total capacity of 1,093 MW, according to S&P Global Market Intelligence data, and will be sold for $241 million in an all-cash transaction.

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The asset purchase agreement involves peaker plants owned by AES Ohio Generation LLC, a subsidiary of DPL, which itself is a subsidiary of AES Corp. The power plants involved are the 236-MW Montpelier Generating Station, a gas-fired facility in Wells County, Ind.; the 12-MW Sidney fuel oil facility in Shelby County, Ohio; and the 33-MW O.H. Hutchings CT gas-fired facility; the 12-MW Monument fuel oil facility; the Yankee combustion turbine and solar facility amounting to 110 MW; and the largest of the group, the 690-MW Tait plant, consisting of the gas-fired units 1-3 and units 4-7, and a fuel oil-fired facility, all of which are in Montgomery County, Ohio.

The largest units, at Tait and Montpelier, are relatively young, all less than 25 years old, but none are used very often.

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As stated in a Form 8-K, DPL will use the net cash proceeds of the transaction to repay in full the outstanding term loans under the credit agreement the company entered to facilitate the asset purchase, and to repay additional debt and/or fund infrastructure investments.

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The companies applied to the Federal Energy Regulatory Commission for approval of the transaction Dec. 26, 2017, stating the total capacity of the portfolio at about 1,052 MW. The commission issued its approval on Feb. 9. (FERC Docket No. EC18-41)

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