KGen owns a modern portfolio of natural gas-fired power generation facilities in the US with an aggregate capacity of 3,030MW. The plants are located near growing load centers within the SERC Reliability Corporation and have transmission access to regions outside of SERC.
The KGen portfolio includes the 630MW Murray-1, 620MW Murray-2 and 640MW Sandsville natural gas-fired plants in the state of Georgia. The company owns the 620MW Hot Spring combined-cycle plant in Arkansas, in addition to the 520MW Hinds plant in Mississippi.
The Murray-1 plant has a power purchase agreement with the Georgia Power Company, a subsidiary of the Southern Company, through May 2012. The remainder of the portfolio operates on a merchant basis.
Richard McLean, KGen CEO, said: Based on the realized improvement in the fundamentals of our business, we believe the time is right for a strategic review. It is our opinion that the market’s expectations have been exceeded by both the speed of market recovery within SERC and the cost of new generation.
