US Power Generating Company Enters Into Merger Agreement

US Power Generating Company (USPG) today announced that it has entered into a definitive agreement and plan of merger with Tenaska Capital Management, LLC affiliates (TCM).

Pursuant to the terms of the agreement, USPG will become a wholly-owned indirect subsidiary of TCM.

Under the terms of the merger, TCM will purchase USPG, with the final price being determined by a number of business and tax adjustments. USPG's debt was upsized by $125 million in conjunction with the merger.

"Acquiring US Power Generating Company provides TCM a strong entry into the New York market," said Dan Lonergan, senior managing director of TCM.

USPG owns and operates 53 generating units at three facilities with a total summer capacity of over 2,180 megawatts. The company sells energy and capacity into the NYISO deregulated market and represents generation sufficient to serve approximately 20 percent of the overall load in New York City.

Consummation of the merger is subject to customary conditions including approvals of the Federal Energy Regulatory Commission and the New York Public Service Commission, as well as expiration of the waiting period regarding the Hart-Scott-Rodino Antitrust Improvements Act of 1976.