Tenaska Power Fund Subsidiary, Warburg Pincus Affiliate in Deal to Acquire Dominion Electric Stations

Energy Resource, Dec 21, 2006

ENERGY RESOURCE-21 December 2006-Tenaska Power Fund Subsidiary, Warburg Pincus Affiliate in Deal to Acquire Dominion Electric Stations(C)2006 JeraOne - http://www.jeraone.com

A subsidiary of Tenaska Power Fund L.P. and an affiliate of Warburg Pincus LLC have jointly signed an agreement to acquire three electric generating stations from Dominion of Richmond, Va.

The announcement was made by Tenaska Capital Management LLC on behalf of TPF, and Warburg Pincus on behalf of Warburg Pincus Private Equity IX, L.P.

The terms of the transaction were not disclosed. The sale is subject to regulatory approvals and is expected to close in the first quarter of 2007.

The three plants include the 625-megawatt (MW) Armstrong plant in Armstrong County, Pa.; the 313-MW Pleasants plant in Pleasants County, W.Va.; and the 600-MW Troy plant in Wood County, Ohio.

The Pleasants and Armstrong plants are positioned to deliver power to the PJM energy grid; the Troy plant serves the Midwest ISO energy grid.

"By joining together to make this purchase, TPF and Warburg Pincus have acquired high quality facilities in strategic locations which help meet market demand," said Alan Levande, managing director of Tenaska Capital, manager of TPF.

"Both Tenaska Power Fund and Warburg Pincus have similar goals and strict investment criteria for energy projects," said Chansoo Joung, a Warburg Pincus managing director. "The added value of Tenaska's broad and deep experience in energy management, production and marketing makes this an exciting addition to our energy portfolio."

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