FERC approves TransAlta, PowerTransitions gas-fired power plant deals
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- FERC approved two gas-fired power plant acquisitions on Thursday — a 1,242-MW deal in New York's Hudson Valley and a roughly $1 billion, 319-MW deal in Colorado — both expected to close late this year.
- PowerTransitions, owned by Switzerland-based Partners Group Holding, is buying the Roseton plant from a Castleton Commodities International subsidiary and plans to develop it into an 'energy campus' serving data centers and energy-intensive industries, citing the site's scale and existing grid infrastructure.
- PowerTransitions separately bought five gas-fired plants in New York totaling 323 MW last month, and the New York Public Service Commission also approved the Roseton transaction on Thursday.
- TransAlta is acquiring the 163-MW Mountain Peak and 157-MW Canyon Peak plants near Denver from Kindle Energy subsidiaries (90% owned by Blackstone), both under long-term tolling agreements to United Power and CORE Electric Cooperative.
- The two Colorado plants will generate about $33 million a year in cash flow, which CEO Joel Hunter said will be redeployed toward growth prospects including data centers in Centralia, Washington and Alberta, Canada.
- TransAlta also plans to convert its coal-fired Centralia, Washington plant to run on gas under a deal with Puget Sound Energy, after the U.S. Department of Energy ordered it to keep operating past its planned end-of-last-year shutdown.
Why it matters: Both buyers are explicitly repurposing legacy gas plants for data center demand — PowerTransitions plans an 'energy campus' at Roseton, while TransAlta will redeploy the ~$33 million in annual cash flow from its Colorado deal toward data centers in Centralia and Alberta. Existing gas plants with grid interconnects are now being valued as data center platforms.
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