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Tenaska Closes $780M Financing for Pennsylvania NatGas-Fired Power Plant

Omaha-based Tenaska this week said it has completed $780 million of financing for the Westmoreland Generating Station, a 925 MW natural gas-fired power plant to be located in Southwest Pennsylvania.

Construction began earlier this year, and Tenaska expects to have the plant in-service by 2018. MUFG Union Bank, BNP Paribas, Citigroup Global Markets and the Industrial and Commercial Bank of China led the bank group for financing.

Tenaska Treasurer Dave Kirkwood said the forward capacity market in PJM Interconnection, which the plant would serve, and five-year revenue hedging were also key to securing the financing. The company formed Tenaska Pennsylvania Partners LLC to build, own and operate the facility. Diamond Generating Corp., a subsidiary of Tokyo-based Mitsubishi is also a project partner. Mitsubishi Hitachi Power Systems is providing the two gas turbines for the plant.

In January, the Pennsylvania Department of Environmental Protection (DEP) held a second public hearing for the plant after it learned that the turbines would generate less emissions than previously estimated (see Daily GPIJan. 13). The agency issued an additional air plan approval to enforce the emissions reductions.

Black & Veatch is the engineering and construction contractor for the project. Westmoreland Generating Station is being constructed on a 400-acre site in South Huntingdon Township, about 45 miles south of Pittsburgh.

Earlier this month, Boston-based Clean Energy Future LLC said it secured $890 million to begin construction on a 940 MW gas-fired power plant in Northeast Ohio, one of seven proposed for the state that would use gas produced in the region (see Daily GPIApril 8).

The Pennsylvania DEP's Air Quality Program has approved 26 gas power plants in the last four years in addition to approving three expansions at existing facilities, said spokesman Neil Shader.

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