Initial Acquisition of Texas Genco Complete
Houston, TX – December 15, 2004 – Texas Genco LLC, formerly known as GC Power Acquisition LLC, has completed the first step of its acquisition of Texas Genco Holdings, Inc. by acquiring its fossil-fueled power generation business, consisting of 60 generating units in 11 power plants, representing a total generating capacity of 13,286 MW.
In July 2004, Texas Genco LLC, which is owned in equal parts by affiliates of The Blackstone Group, Hellman & Friedman LLC, Kohlberg Kravis Roberts & Co. L.P. and Texas Pacific Group, entered into a transaction agreement with CenterPoint Energy and Texas Genco Holdings to acquire Texas Genco Holdings in a two step transaction.
Jack Fusco, Chairman and Chief Executive Officer of Texas Genco LLC, said, “This is a great company with high-quality assets and talented and dedicated employees. The stewardship provided by CenterPoint has been integral to its success.”
“Our focus will be to build upon that success by making Texas Genco the premier independent electric wholesale generating company in Texas,” said Fusco.
He added, “We are mindful of the important role Texas Genco plays in the community, especially in the greater Houston area, which, I am delighted to say will remain Texas Genco’s headquarters.”
The second step of this transaction will be to acquire Texas Genco Holdings, whose principal remaining asset at that time will be its ownership interest in the South Texas Project nuclear generating facility, following approval of the Nuclear Regulatory Commission. This is expected to occur in the first half of 2005.
Texas Genco LLC is one of the largest wholesale electric power generating companies in the United States with over 13,000 megawatts of generation capacity. It sells electric generation capacity, energy and ancillary services in Texas’ largest power market, the Electric Reliability Council of Texas (ERCOT). Texas Genco has one of the most diversified generation portfolios in Texas, using natural gas, oil, coal and lignite fuels. For more information, visit our web site at www.txgenco.com.