Centrica PLC
April 22 2004
Centrica acquires its first generation plant in North America
Centrica today announced it has entered into an agreement with FPL Energy LLC to
acquire Bastrop Energy Partners L.P., owner of the Bastrop Energy Center (BEC)
power station in Texas, for $143 million (£79.9 million) in cash.
The acquisition of this 540 megawatt plant, at a price equivalent to $265 (£149)
per kilowatt, marks Centrica's first purchase of an electricity generation asset
in North America. The natural gas-fired, combined-cycle station became
operational just two years ago.
The transaction is subject to FPL Energy completing the purchase of its joint
venture partner's 50 per cent stake in BEC, details of which were announced last
night.
Centrica chief executive Sir Roy Gardner said: 'This acquisition has been
carefully timed. We've been monitoring the Texas market closely and asset values
are now much more reflective of forward wholesale electricity prices than they
have been.
'Today's announcement is in line with our strategy to meet a significant
proportion of our customer requirements from our own capacity, both in North
America and in the UK.'
BEC is located 25 miles east of Austin, where it is well positioned to serve
Centrica's customer supply base in Texas. The plant includes 55 megawatts of
rapid-response peak period generating capacity.
Completion of the transaction is expected by the third quarter of 2004. This is
subject to competition approval by the Federal Trade Commission and the
Department of Justice.
Upon completion, Centrica plans to retain existing plant employees involved in
the commercial operations of BEC.
Centrica currently serves approximately 900,000 residential and commercial
customers in Houston, Dallas-Fort Worth, Midland-Odessa and throughout South and
West Texas.
Enquiries:
Centrica Media Relations 01753 494085
Centrica Investor Relations 01753 494900
Notes to editors:
1. FPL Energy LLC is a subsidiary of FPL Group, which is listed on the New York
Stock Exchange and which includes the Florida Power & Light utility company.
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