Power Plants
Tri-State Buys Colorado Gas Plant
Following a year in which its load grew at triple the national utility average, Colorado’s Tri-State G&T is buying a 272-megawatt natural gas-fired plant.
Tri-State G&T is buying this natural gas-fired plant in Fort Lupton, Colo. (Photo By: Tri-State G&T)
It will acquire the plant in Fort Lupton, Colo., about 30 miles northeast of Denver. For more than two years, Tri-State has been buying 150 megawatts of power from the facility. The remaining output is sold to a third party under a contract that runs through 2019.
For Westminster-based Tri-State, the need is there. In 2010, it saw a 5.5 percent growth in load. The G&T—which serves 44 distribution co-ops in four states—said it was the result of industrial development in rural areas.
“The purchase of this power plant presented a solid business opportunity for Tri-State and a great value to our member electric cooperatives,” said Ken Anderson, executive vice president and general manager.
“Our plans are to own the facility for the long term,” Anderson said of the 17-year-old plant. “We are evaluating several modernization projects to enhance its efficiency and reliability.”
The plant is being sold by Starwood Energy Group, a Greenwich, Conn.-based private equity firm. The deal is expected to close in about six weeks, and terms were not disclosed.
Tags: G&T, Power Plants