Topaz Power Seen Offloading Non-Coleto Assets

Carlye/Riverstone and Sempra Energy are getting close to offloading the remaining assets in holding entity Topaz Power Group.

Carlye/Riverstone and Sempra Energy are getting close to offloading the remaining assets in holding entity Topaz Power Group. Topaz was the vehicle that housed the coveted Texas coal-fired Coleto Creek plant which was acquired by American National Power (PFR, 4/24). The bids appear to be from parties more attracted to the ground beneath the facilities, with one official saying some buyers plan to decommission the facilities if they acquire them.

The 3 GW of natural-gas and oil-fired ERCOT plants were assigned little value when the duo originally bought the portfolio from American Electric Power in March 2004 (PFR, 3/14/2004)

Art Larson, a spokesman for San Diego-based Sempra, declined to comment. Pierre Lapeyre, co-head of Riverstone in New York, did not return a call for comment. Jeff Taufield, spokesman for boutique sales advisor Greenhill & Co. at public relations firm Kekst & Co., did not comment or make Greenhill officials available.

The plants, all in Texas, total 2,921 MW, but some are not currently firing. Four of the operating plants have must-run stipulations while three others are merchant. The plants include the 697 MW B.M. Davis plant in Corpus Christi, a 182 MW plant known as J.L. Bates in Mission and a 255 MW plant in San Benito called La Palma.