DTE Energy plans to purchase a 732 MW simple-cycle natural gas facility at a price tag of $240 million.
Currently owned by LS Power Group, the Renaissance Power Plant, located in Carson City, Michigan, will allow DTE to meet the demand of approximately 260,000 households at the peak of summer, as well as help DTE address its current and future resource adequacy requirements. DTE Energy’s electric utility serves 2.1 million customers in Southeastern Michigan and its natural gas utility serves 1.2 million customers across Michigan.
“The purchase of Renaissance Power provides DTE customers with a safe, affordable, reliable and clean generation resource at a cost that is significantly below new build,” said Jerry Norcia, DTE Electric’s president and chief operating officer. “Tightening supply markets for electricity in the region are expected to cause prices in the state and region to rise and become more volatile. This acquisition helps protect our customers from these dynamics.”
LS Power originally acquired the assets from Dynegy in the final months of 2009.
Renaissance Power is interconnected in the Midwest Independent System Operator (MISO) system and located in Consumers service territory where it offers its energy into the MISO day ahead market without off-take arrangements.
The transaction is expected to be completed in the first quarter of 2015.
Source: Fierceenergy.com