Banks have submitted proposals for debt financing to the developer of a new-build combined-cycle gas-fired project in PJM Interconnection.

Competitive Power Ventures is evaluating the bids and has set its sights on reaching financial close on the 1,250 MW Three Rivers Energy Center in Grundy County, Ill., this summer.

The project is one of several that were tipped to advance following last year’s higher-than-expected capacity auctions, especially because it is located in the ComEd region, where capacity cleared at $196/MW-day (PFR, 5/25).

“They’re looking to close before the auctions in August,” says a project finance banker familiar with the process, referring to the PJM base residual auctions for capacity that have been delayed amid wrangling between the grid operator and federal regulators over the rules.

The financing would likely include a letter of credit facility to cover a security required by PJM from developers that bid into the auction, the banker adds.

CPV has not hired an investment bank to raise equity for the project and it could not immediately be established whether the developer has secured commitments from any third-party equity investors. Officials at the developer in Boston did not respond to a request for comment.

The Three Rivers project is located in Goose Lake Township, at the confluence of the Illinois, Kankakee and Des Plaines Rivers. Kinder Morgan's Natural Gas Pipeline Co. of America pipeline traverses the 80-acre project site.

It is a roughly 30 minute drive from the town of Elwood, which is the location of the 1,200 MW Jackson Generation CCGT project for which J-Power is also in the process of arranging debt (PFR, 1/8).

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