Rockland Capital Restructures Prime Energy
HOUSTON, TX – October 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.