Complete Energy Holdings Reaches Agreement To Buy La Paloma Generating Facility

HOUSTON--(BUSINESS WIRE)--Complete Energy Holdings, LLC ("Complete Energy") announced today that one of its wholly-owned subsidiaries has signed a definitive agreement to purchase a 100% interest in La Paloma Generating Company, LLC. The 1,022 MW gas-fired, four-unit combined-cycle facility is located in Kern County, California. The purchase price is approximately $560 million in cash plus potential adjustments of up to $50 million for certain plant improvements plus adjustments for working capital and other items. The transaction is expected to close during the third quarter of this year, subject to regulatory approvals.

Approximately half of La Paloma's capacity is currently sold to Southern California Edison Company under two tolling agreements. The remaining output is sold in the California merchant power market.

According to Peter Dailey, Managing Director of Complete Energy, "The addition of La Paloma will complement and strengthen Complete Energy's mission to execute on power generation transaction opportunities. This acquisition accelerates our plan to acquire 7,000 to 10,000 MW of both merchant and contracted power generation assets over the next three years."

ABOUT COMPLETE ENERGY

Complete Energy is an acquirer, owner and operator of power generation assets. It is led by industry veterans Lori Cuervo, Peter Dailey, Milton Scott and Hugh Tarpley. Among the owners of Complete Energy is Engage Investments, L.P., a private equity company funded by the Erving Wolf family. Complete Energy is actively seeking to acquire other merchant and contracted power plants currently being divested by utilities, independent power producers, and financial institutions. For more information, visit www.complete-energy.com.