LS Power has officially declared an agreement to acquire the Hunterstown natural gas-fired power plant in Gettysburg, Pennsylvania, from a Platinum Equity affiliate. The 810-megawatt combined cycle gas-fired power generation facility, situated in the PJM Interconnection, is anticipated to undergo the finalization of the transaction in the second quarter of 2024.

Nathan Hanson, the President of LS Power Generation, conveyed that Hunterstown would become part of LS Power's fleet of flexible gas-fired generation. He emphasized that this portfolio consists of assets possessing dynamic ramping attributes, which he considered crucial for a successful transition to clean energy. This acquisition aligns with LS Power's strategic vision, as the company aims to integrate Hunterstown into its existing collection of flexible gas-fired generation assets, essential for a seamless transition toward clean energy.

Hanson emphasized the pivotal role of LS Power's flexible generation assets, stating that they not only provide a secure, low-carbon, and cost-effective supply of reliable electricity but also play a crucial complementary role during the energy transition. The flexibility of these assets ensures a continuous power supply when renewable resources face intermittency challenges or when extreme weather events disrupt the stability of the grid.

LS Power manages an extensive gas generation fleet, boasting over 16,000 megawatts, which complements its diverse energy transition platforms. These platforms encompass wind, hydro, and solar power, alongside battery energy storage, demand response, microgrids, renewable fuels, electric transportation, and transmission infrastructure.

Paul Segal, LS Power CEO, highlighted the necessity of efficient, flexible gas-fired generation in achieving the reliable, affordable, and responsible decarbonization of the electric grid. He underscored the significance of LS Power's fleet in expediting the clean energy transition by effectively addressing the intermittency challenges associated with renewables.

Segal stressed the critical role of gas-fired generation, especially during a period marked by surging electricity demand driven by electrification, data center proliferation, and a manufacturing resurgence. Concurrently, coal plants are retiring, and the integration of renewables into the grid is unfolding gradually. LS Power's comprehensive approach acknowledges the need for both rapid deployment of low-carbon energy resources and the maintenance of sufficient natural gas generation to ensure energy security and reliability.

LS Power's gas generation fleet spans 12 states and is predominantly comprised of peaking plants, along with combined cycle facilities. Milbank LLP is serving as the legal advisor for this acquisition, while Guggenheim Securities LLC and Scotiabank are providing financial advisory services to LS Power in the Hunterstown acquisition. This strategic move positions LS Power to contribute actively to the evolving energy landscape, addressing the challenges of intermittency and reinforcing the reliability and security of the nation's energy infrastructure.