Retains Ownership Interests and Continues to Manage and Operate Assets
OMAHA, Nebraska – Tenaska, Inc. (“Tenaska”) announced that Tyr Energy, Inc. (“Tyr”) and Chubu Electric Power Co., Inc. (“CEPCO”) have jointly agreed to acquire a portion of interests in five electric generating plants owned by Tenaska affiliates.
The five plants are the 945-megawatt (MW) Tenaska Georgia Generating Station near Franklin, Ga.; the 885-MW Tenaska Virginia Generating Station near Scottsville, Va.; the 1,220-MW Tenaska Kiamichi Generating Station near Kiowa, Okla.; the 885-MW Tenaska Central Alabama Generating Station near Billingsley, Ala., and the 845-MW Tenaska Gateway Generating Station near Mt. Enterprise, Texas.
Tyr, a wholly-owned subsidiary of ITOCHU Corporation, and CEPCO formed a jointly-owned company to acquire the interests with Tyr leading the transaction on behalf of the two companies. The joint venture will become owner of 35 percent of the Georgia, Virginia, Kiamichi and Central Alabama plants and approximately 22 percent of the Gateway plant. Tenaska affiliates will retain significant ownership and remain the managing general partner and operator of each plant. Tenaska offered a minority interest in the plants for sale earlier in 2010.
“These are well-built and well-structured first-class assets and this acquisition will represent a significant addition to Tyr’s portfolio,” said Tyr CEO Karl Usami. He added, “This investment will also enhance our relationship with Tenaska as well as CEPCO. We look forward to working with Tenaska not only for this transaction but also other opportunities.”
“This is our first considerable investment in U.S. independent power producer (IPP) assets,” said CEPCO Executive Officer Hiroshi Ichihara. “It is a pleasure for us to participate in such an important transaction with Tenaska, Tyr, and ITOCHU, and we hope to enhance our business relationship with each of them.”
“Selling part of our ownership interests is consistent with our goal of optimizing the value of existing assets,” said Tenaska Vice Chairman and CEO Jerry Crouse. “We look forward to a good long-term working relationship with our new partners.”
Citigroup and Morgan Stanley are advising Tenaska on the transaction. The sale is subject to regulatory approvals and expected to be final by year-end 2010. Terms are confidential.
About Tyr Energy, Inc.
Tyr Energy focuses on investment through acquisition and development of North American power generation assets. Current portfolio of equity ownership and development includes gas fired facilities and a biomass power development company with generation located in various states. Tyr Energy is a wholly-owned subsidiary of ITOCHU Corporation and its U.S.-based subsidiary ITOCHU International Inc.
About Chubu Electric Company
CEPCO is a corporation established and existing under the laws of Japan. Founded in 1951 and headquartered in Nagoya, CEPCO is Japan’s third-largest electric power company in terms of power generation capacity, electric energy sold, operating revenues and total assets, serving an area of approximately 39,000 square kilometers in five prefectures of central Japan, home to some 16 million people, also known as one of Japan’s leading manufacturing regions and many world class Japanese industries. CEPCO is also active in the power generation business outside of Japan, holding equity stakes in power generation assets in the United States, Canada, Mexico, Qatar, Malaysia and Thailand.
About ITOCHU Corporation
ITOCHU is a diverse trading and industrial company headquartered in Tokyo with annual revenues of more than Japanese Yen 3,416 billion in the fiscal year ending March 31, 2010. It operates over 400 subsidiaries and affiliates involved in textile, machinery, information and communications technology, aerospace, electronics, energy, metals, minerals, chemicals, forest products, general merchandise, food, finance, realty, insurance, and logistics services. www.itochu.co.jp.
Tenaska, based in Omaha, Neb., is one of the leading independent power producers in the U.S., with regional offices in Dallas, Denver and Calgary, Alberta. Tenaska has developed approximately 9,000 megawatts (MW) of power generation and manages and operates eight power plants totaling 6,700 MW that it owns in partnership with other companies. Tenaska also provides energy risk management services and is involved in asset acquisition and management; natural gas, power and biofuels marketing; fuel supply; natural gas exploration, production and transportation systems, and electric transmission development. In 2009, Tenaska and its affiliates managed approximately 34,000 MW of assets on behalf of a variety of customers and private equity investors. An affiliate, Tenaska Marketing Ventures, is regarded as one of the top 10 natural gas marketers in North America, and provides natural gas commodity, volume management, hedging and asset management products and services. Another affiliate, Tenaska Power Services Co., specializes in physical power marketing and electric asset management for utilities and non-utility generators, and is one of the largest marketers of physical power in the United States. For more information about Tenaska, visit the company’s website at www.tenaska.com.