LS Power has taken first-round bids for the sale of a 2.3 GW portfolio of gas-fired power plants located in PJM Interconnection.
The trio of assets, spread across two zones within the grid system operator's territory, includes a pair of simple-cycle facilities that LS Power has been looking to sell since last year as well as its 765 MW combined-cycle Ironwood facility in Lebanon, Pa.
The firm relaunched the sale process in May with the addition of Ironwood, packaging it alongside its 1,007 MW Aurora and 515 MW Rockford peakers, which are located in their namesake towns in northern Illinois (PFR, 3/9).
The peakers are located in the ComEd locational deliverability area while the Ironwood facility is located in the MAAC LDA.
LS Power has recruited Guggenheim Securities and Bank of America Merrill Lynch to run the new sale process, which has attracted several bidders, a person close to the process tells PFR.
The private equity developer and sponsor initially acquired Ironwood in 2016, through portfolio company Helix Generation, from Calgary-based TransCanada Corp. The facility was one of four assets totaling 3.95 GW that TransCanada handed over in the $2.2 billion deal.
Ironwood has changed hands a number of times prior to LS Power’s acquisition, having first been sold by AES Corp. in 2012 to PPL Corp., which subsequently sold it under its subsidiary Talen Energy Corp. to TransCanada in 2016.
LS Power also acquired the Aurora and Rockford simple cycle facilities in 2016, paying NRG Energy $369 million for the plants before refinancing them as RA Generation with a $325 million seven-year term loan package the following year.
Officials at LS Power in New York did not answer requests for comment by press time.