JERA eyes 50% stake in US-based Compass' gas-fired thermal plants

The portfolio has a total power generation capacity of 1,123MW.

JERA is planning to buy a 50% equity interest in three natural gas-fired thermal power generation plants or the “Compass Portfolio” in the northeastern US. The Compass Portfolio has an aggregate power generation capacity of 1,123MW. It includes the Marcus Hook Energy Center, in suburban Philadelphia, and the Dighton, and Milford Energy facilities in Massachusetts.

The planned acquisition comes after JERA bought 50% of the Linden Cogeneration Facility in April of this year. The Linden Cogeneration Facility is a 972-MW natural gas-fired thermal power cogeneration complex in northern New Jersey. Once JERA's acquisition of the Compass Portfolio from Star Energy Group is completed, the company's net ownership of electric generation in North America will total approximately 3,536MW.

JERA Americas is expected to participate in the operation of the Compass Portfolio once the transaction is completed. Power and capacity from the Marcus Hook Energy Center are sold mainly into the PJM Interconnection (PJM) wholesale electricity market, and power and capacity from the other facilities are sold into the ISO New England (ISO-NE). The Marcus Hook Energy Center also has a contract for capacity with the Long Island Power Authority, a power distribution utility. 

JERA, on the other hand, intends to transfer personnel to bring operational know-how accumulated through JERA’s extensive power generation business both overseas and in Japan. “JERA is committed to significantly expanding our long-term presence in North America by using a disciplined approach to build a portfolio of gas-fired and renewable generation facilities,” says Toshiro Kudama, CEO of JERA Americas and senior executive vice president at JERA.

JERA plans to continue expanding its overseas power generation business not only in the United States but in other parts of the world. JERA is also eyeing to tap the expertise developed in the US merchant markets in anticipation of the forthcoming functional unbundling of Japanese power markets.

JERA is an equal joint venture of TEPCO Fuel & Power and Chubu Electric Power Company.