ArcLight buying stake in Caithness projects

Boston investment group ArcLight Capital Partners said today it made a deal to acquire interests in 18 geothermal, wind and solar power generation projects from New York's Caithness Energy.

The projects have a total installed capacity of 824 megawatts.

Financial terms of the transaction were not disclosed, but ArcLight said it would assume operation, maintenance and management responsibilities for ten of the facilities.

ArcLight is getting a stake in the 240 MW Coso, 66 MW Dixie Valley and 18 MW Beowawe geothermal projects.

In wind, ArcLight is buying an interest in 11 facilities, including the 60 MW Cameron Ridge, 47 MW Pacific Crest, 43 MW San Gorgonio and 43 MW Foote Creek II-IV.

The investment group is also purchasing stakes in the 80 MW SEGS VIII and SEGS IX solar projects.

The companies said the deal is expected to close in the third quarter of 2007, subject to Hart Scott Rodino approval and other regulatory approvals and consents.

Caithness said it will continue to own and operate the remainder of its generation portfolio, as well as its development portfolio.

The company currently holds in excess of 2,250 MW's of renewable and clean combined-cycle projects, including Caithness Long Island, a 350 MW power project under construction on Long Island.

ArcLight, which said it has more than $6.8 billion under management, used Citigroup as financial advisor on today's deal.

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