Energy investor ArcLight creates new unit to manage power assets

Public Service Enterprise

10/01/2024 13:00

By David French
       Jan 10 (Reuters) - Energy-focused buyout firm ArcLight
Capital Partners has created a new unit to manage and operate
its portfolio of power infrastructure investments, according to
a statement seen by Reuters.
    The move to create the new division, Alpha Generation
(AlphaGen), will allow Boston-based ArcLight to streamline the
running of its power assets, cut costs, and position itself to
capitalize on energy transition investment opportunities.
    The portfolio, to be managed by AlphaGen is valued at more
than $3 billion, including debt, according to a person familiar
with the matter, and has more than 13,000 megawatts of power
generation capacity.
    Notable investments in the portfolio include Eastern
Generation, which primarily owns and operates power plants in
New York and Connecticut, and Parkway Generation, which acquired
natural gas-fired power plants in New Jersey and Maryland in
2022 from Public Service Enterprise Group  PEG.N .
    ArcLight's ownership of each of its investments will remain
inside existing funds, and future ArcLight power investments
could be managed by AlphaGen, the source said.
    AlphaGen will be run by former Vistra  VST.N  Chief
Executive Curt Morgan, ArcLight said in the statement. Morgan
has been working as a senior advisor at ArcLight since
September.
    Other executives involved in running AlphaGen include power
industry veteran Mark Sudbey, who will serve as interim head of
AlphaGen until Morgan takes over as CEO on May 1, and former EDF
Energy North America executive Mary Anne Brelinsky.
    ArcLight is focused on investments in the power and energy
infrastructure sectors, and has deployed almost $70 billion of
capital since it was established in 2001.

 (Reporting by David French in New York)
 ((davidj.french@thomsonreuters.com;))