Tenaska has agreed to acquire a gas-fired
project in Massachusetts from Ares-EIF and
John Hancock Life Insurance Co.
The privately-owned independent power producer sought the
approval of the U.S. Federal Energy Regulatory
Commission to acquire the 289 MW Berkshire Power
project in Agawam, Mass. on March 20.
Morgan Stanley is said to have launched an
auction process for the plant on Ares-EIF's behalf last
The terms of the agreement, signed on March 15, could not be
immediately be learned. Officials at Morgan Stanley and
Ares-EIF in New York, Tenaska in Omaha, Neb., and John Hancock
in Boston either declined to comment or did not respond to
Ares-EIF owns a 67% stake in Berkshire Power, while
John Hancock owns the remaining 33%. The
Ares-EIF stake is held through the private equity shop's United
States Power Fund II, which closed at $750 million in 2005 (
The facility has been online since June 2000.
In 2016, the project company, Berkshire Power
Co., and Power Plant Management
Services, a general and administrative services
management consulting firm that provided project management and
administrative services, agreed to pay $7.2 million in fines
and civil penalties after pleading guilty to tampering with
emissions equipment and misinforming regulators and the grid
operator for three years.
The project’s former general
manager, Frank Basile, concealed
maintenance work and related outages from ISO New
England between 2008 and 2011, according to a
statement published by the Office of the U.S.
Attorney's Office for the District of Massachusetts,
and an order issued by FERC (