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S&P places Southeast PowerGen on CreditWatch negative

Southeast PowerGenLLC's BB project rating has been flagged for a possible downgrade atStandard & Poor's Ratings Services.

Placing the ratings on CreditWatch negative was prompted by thecompany's inability to recontract half of the 527-MW Effingham and 660-MW Sandersville facilities in Georgia, the rating agencysaid.

"When we originally rated the project in , we had assumed that Effinghamand Sandersville would have recontracted at prices of $6.00/kilowatt month and $2.50/kWmonth, respectively, and that this would have limited market risk to a significantdegree. However, since then, market power prices throughout the U.S. have collapsedon lower than expected demand and winnowing natural gas prices," S&P saidin an April 27 note to investors.

Carlyle Group LPacquired interests ofthe Effingham and Sandersville plants in late 2014. It shares ownership in the facilitieswith General Electric Co.subsidiary GE Energy Financial Services.