Monday, April 01, 2013

Energy Capital Partners

Energy Capital Partners is a private equity firm focused on investing in North America’s energy

They strive to utilize a disciplined investment approach focused on acquiring and developing interests in high quality assets, contracts and businesses primarily in the following sectors: infrastructure. Since 2005, the Firm has raised over $8 billion in commitments, utilizing this capital to build and acquire investment platforms across multiple energy sub-sectors.

With offices in Short Hills, New Jersey and San Diego, California, Energy Capital Partners seeks to leverage its team’s decades of energy experience in investing and managing energy infrastructure assets and businesses to serve its investors and portfolio companies.

Power GenerationFossil fuel generation and renewable energy facilities
Midstream Oil & GasGas storage, pipelines and other related assets
Electric TransmissionNew and existing lines
Energy Equipment & ServicesManufacturing, construction and services related to the energy industry
Environmental ServicesAssets addressing environmental challenges of fossil and nuclear power generators
Other Energy Related AssetsOther products and services supporting the power, oil and natural gas sectors as well as energy efficiency and construction platforms

Recent news: In early March, Dominion Resources sold three power plants totaling 4.1 gigawatts of capacity to Energy Capital Partners. After stripping out tax benefits, the implied underlying price paid per kilowatt of capacity was just over $100. In contrast, the Department of Energy estimates the cost of building a new coal-fired plant at about $3,000 per kilowatt. 

Doug Kimmelman, founder of Energy Capital, says the majority of the value in the deal with Dominion related to a 1.2-gigawatt plant in Kincaid, Ill. It was recently fitted with equipment to control sulfur dioxide emissions and sells power into the regional electricity market served by the PJM Interconnection transmission system.  (WSJ, 3/31/2013, Energy Capital Partners)


The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today that Dominion Energy has agreed to pay a $3.4 million civil penalty and spend approximately $9.8 million on environmental mitigation projects to resolve Clean Air Act (CAA) violations.
The settlement will result in reductions of nitrogen oxides, sulfur dioxide, and particulate matter by more than 70,000 tons per year, across three of the utility’s coal-fired power plants, located in Kincaid, Ill., State Line, Ind., and Somerset, Mass.
Under the settlement, Dominion must install or upgrade pollution control technology on two plants, and permanently retire a third plant. Dominion will be required to continuously operate the new and existing pollution controls, and will be required to comply with stringent emission rates and annual tonnage limitations. The actions taken by Dominion to comply with this settlement will result in annual reductions at the Brayon Point and Kincaid plants of sulfur dioxide (SO2) and nitrogen oxides (NOx) emissions by 52,000 tons from 2010 levels. The retirement of the State Line plant will result in an additional reduction of 18,000 tons of SO2 and NOx.
The settlement also requires Dominion to spend $9.75 million on projects that will benefit the environment and human health in communities located near the Dominion facilities. A total of $9 million will be spent on such projects as ; 1) wood stove changeouts, including $2 million for changeouts in southeastern Massachusetts, Rhode Island, and eastern Connecticut; 2) switcher locomotive idle reduction for Chicago rail yards, 3) land acquisition and restoration adjacent to, or near, the Indiana Dunes National Lakeshore, 4) energy efficiency and geothermal/solar projects for local schools and food banks, and 5) clean diesel engine retrofits for municipalities and school districts. Dominion must also pay a total of $750,000 to the United States Forest Service and the National Park Service, to be used on projects to address the damage done from Dominion’s alleged excess emissions.  (EPA)

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