April 26, 2018 Read More →

Avenue Capital, Middle River Eye Purchase of Navajo Coal Plant

Bloomberg:

The emails were provided to Bloomberg Environment by the Institute for Energy Economics and Financial Analysis, which has long argued that NGS is economically unsustainable. Their authenticity was confirmed to Bloomberg Environment by DeEtte Person, a Central Arizona Project spokeswoman.

A Lazard spokeswoman declined to comment, as did a representative of Salt River Partners, which owns the biggest share of NGS under the current lease.

Navajo’s supporters—most prominently Peabody Energy, which supplies all of its coal—have been trying for months to find a taker. During that time, both Peabody and Salt River Partners, which owns the biggest stake in NGS under the current lease, have publicly said that as many as 14 entities have shown interest in taking over. But no names have been made public until now.

Avenue Capital, one of the biggest hedge funds in the world, controls some $12 billion in assets. According to its website, it seeks “good companies with bad balance sheets.”

Its subsidiary, Middle River Power, owns three gas power plants in California, Virginia, and West Virginia; one geothermal plant in California; and a coal plant near Baltimore. At 385 megawatts, that plant, known as C.P. Crane, is less than one-fifth the size of the 2,250 megawatt Navajo Generating Station. C.P. Crane is scheduled for closure in June, meaning Middle River will only have owned it for a little more than two years.

Avenue Capital, Middle River Eye Purchase of Navajo Coal Plant

Posted in: IEEFA In the News

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