GE Provides Financing/Technology for Illinois Power Plant
GE announced it is anchoring a lending group for longtime customer Invenergy to finance construction of its 584-megawatt Nelson Energy Center in Illinois. GE Energy Financial Services served as the administrative agent, bookrunner and, through GE Capital Markets, as primary lead arranger of the senior secured credit facilities. GE Energy Financial Services, ING Capital and Siemens Financial Services are providing construction and term loans for the plant. ING Capital served as joint lead arranger and documentation agent. Financial details were not disclosed.
The plant, which is under construction in Rock Falls, about 120 miles west of Chicago, will operate with GE’s 7F gas turbine technology, with support of a long-term GE maintenance services agreement.
Invenergy Development Company, a joint venture between an affiliate of Invenergy and investment firm Stark Investments, is building the plant and plans to begin commercial operations to sell power into the PJM wholesale market in early 2015. Invenergy Services, an affiliate of Invenergy, will operate and maintain the plant.
“This transaction reinforces GE’s unique ability to connect financing and technology to serve a common customer, expands our relationship with longtime customer Invenergy to lead arranging and grows our debt portfolio,” said Carl Peterson, a managing director and Debt Origination Leader at GE Energy Financial Services.
GE Energy Financial Services has made equity or debt investments in several Invenergy power generation projects. Overall, GE Energy Financial Services holds equity and debt investments in power projects with a combined capacity of 30 gigawatts, equivalent to the installed generating capacity of Norway.
In addition to two GE gas turbines, the plant will use two GE A10 steam turbines. Invenergy has entered into a site change agreement with GE to modify turbine and control systems. For example, GE is upgrading the units with GE’s Mark* VIe software controls technology, which improves operational performance.
Invenergy also entered into a contractual services agreement with GE, to provide long-term maintenance and engineering services for the plant’s GE equipment. GE will install OpFlex* model-based controls software, which automates operational adjustments to improve performance and availability to generate power.
GE’s contractual services agreements help customers predict maintenance costs while ensuring high availability and steady revenue. Invenergy will benefit from GE’s latest technology, local resources and global experience. GE has long-term service agreements at more than 700 sites worldwide.
*Trademark of General Electric Company