Diamond Generating, the Los Angeles-based subsidiary of Mitsubishi, is aiming to grow its generation portfolio from 2.2 GW to 3 GW over the next couple of years. Hiroshi Sakuma, president, says it is involved at some stage in at least three or four potential acquisitions of facilities that have long-term contracts, or some other feature that guarantees a steady stream of income.
Sakuma says Mitsubishi allocated about $1 billion for acquisitions and development in its global power business, of which about 40-50% is tagged for Diamond Generating. He says seven of its plants are owned with Tenaska and three are wholly owned. Diamond Generating is looking for deals all over the U.S., but prefers the West Coast because it operates out of Los Angeles.
Sakuma says he has taken a look at Coleto Creek Power plant (PFR, 12/19), which is being sold by the Topaz Power Group joint venture owned by Sempra Energy and Carlyle/Riverstong Holdings, but emphasized that the company would not pay a premium for the asset.
Diamond Generating co-owns seven plants with Tenaska Energy, the Omaha, Neb.-based IPP. Tenaska is reportedly shopping its majority interest in one of those plants, Tenaska Frontier Generating Station (PFR, 12/23), and Diamond Generating has reportedly decided not to make an offer for Tenaska’s share (see story, page 3). Sakuma said that the investment company has a good relationship with Tenaska.