December 10, 2007
PPM Energy Purchases Klamath Falls Power Plant
Wind power generator PPM Energy, a unit of Iberdrola Renovables, has completed the purchase of the 506MW Klamath cogeneration plant from the city of Klamath Falls. The combined-cycle combustion turbine plant is located in southern Oregon.
The initial purchase agreement for the Klamath plant was announced in September 2007. The company said that since then, regulatory approvals have been obtained, operating permits have been transferred and the municipal revenue bonds issued by the city to finance construction of the plant have been paid off.
The company has managed and operated the plant since it went online in 2001, as well as purchasing 47% of its energy output. In addition, it owns and operates the adjacent 100MW Klamath peaking plant and the 200MW West Valley plant in Utah, bringing its total gas-fired thermal facilities to 806MW.
The total cost to acquire the plant was around $290 million. The acquisition allows PPM to fully integrate Klamath into its portfolio of gas and wind plants to serve utility customers throughout the western US.
Peter van Alderwerelt, senior vice president of PPM Energy, said: "PPM Energy has an excellent track record operating the Klamath plant safely and efficiently. Our team of 23 plant employees has been a great member of the Klamath community and we look forward to continuing their tradition of safety, reliability and superior plant performance."