LS Power, a diversified energy company, is set to enhance its portfolio with the acquisition of the Hunterstown power plant in Gettysburg, Pennsylvania. The 810MW natural gas-fired power plant, previously owned by an affiliate of Platinum Equity, is a pivotal contributor to the PJM Interconnection, powering the PJM (Met-Ed) 500kV grid. The plant, built in 2003, boasts the capacity to supply energy to over 600,000 households.
Pivotal Asset with a Storied Past
The Hunterstown power plant, equipped with three GE 7FB.04 combustion turbines and one GE Electric D11 steam turbine, had been under Platinum Equity’s stewardship since 2018. Platinum Equity, renowned for its operational stewardship strategy in dislocated sectors, had acquired the power plant from GenOn, a subsidiary of NRG Energy. The subsequent sale to LS Power exemplifies Platinum Equity’s ongoing commitment to create value across the investment lifecycle.
LS Power: A Diversified Powerhouse in the Energy Sector
Since its inception in 1990, LS Power has curated a diverse energy portfolio, encompassing renewables, energy storage, and flexible gas-fired generation assets. The acquisition of the Hunterstown power plant will further enhance LS Power’s capacity, fortifying its position in the energy sector. The company has a gas generation fleet exceeding 16,000 megawatts and has developed or acquired 47,000 MW of power generation, including utility-scale solar, wind, hydro, battery energy storage, and natural gas-fired facilities. Furthermore, LS Power Grid has built over 780 miles of high-voltage transmission, with 350+ miles and multiple grid infrastructure projects currently under construction or development.
A Strategic Acquisition amid a Clean Energy Transition
The acquisition, expected to conclude in the second quarter of 2024, comes on the heels of LS Power’s recent completion of the $600 million Central East Energy Connect transmission project in New York with the New York Power Authority in December 2023. It signifies a strategic shift in asset ownership within the energy sector, with LS Power acquiring a robust operation that could bolster its position in the PJM market. More importantly, the integration of the Hunterstown plant into LS Power’s fleet underlines the company’s ability to support the clean energy transition with flexible gas-fired generation assets.
