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HOUSTON, TX, Oct 12, 2005 -- Rockland Capital
Energy Investments, LLC (Rockland) announced
today that it restructured the power purchase
agreement between Prime Energy Limited Partnership
"Prime" and Jersey Central Power &
Light "JCP&L", and subsequently acquired
the other 50% interest in Prime from its former
partner, The Goldman Sachs Group, Inc "Goldman".
The structure of the transaction included the
termination of the existing power purchase agreement,
which gave rise to the effectiveness of a new
agreement amongst affiliates of the parties.
The transaction transformed the power generation
facility into a merchant generator located in
the PSE&G Zone of the PJM market.
"The restructuring of the Prime power purchase
agreement is consistent with our business philosophy
to continually evaluate our assets in light
of market conditions and to maximize the value
of our investments through creative solutions,"
said Scott Harlan, Chief Operating Officer and
Managing Director of Rockland. "During the first
eighteen months of our ownership, we made numerous
changes to the contractual structure of the
project to improve profitability. The complete
restructuring of the power purchase agreement
was a natural and necessary culmination of those
efforts, in light of the historically high fuel
prices which the project was facing."
Immediately following the restructuring of the
power purchase agreement in September, Rockland
and Goldman entered into a purchase and sale
agreement for Goldman's 50% interest, and that
transaction recently closed.
"Prime now faces new challenges in this competitive,
deregulated market, but with full control of
the asset, Rockland will be in the best position
to maximize its value," said Harlan.
Rockland Capital Energy Investments is a private
energy investment company founded in 2003 to
focus on the acquisition, development and optimization
of companies and projects in the North American
and European energy sectors. Rockland's investment
philosophy is value based and acquisitions are
expected to yield competitive risk adjusted
returns. The company has offices in New York,
Houston, London and Dortmund.
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