Invenergy Thermal Operating I LLC

Invenergy Thermal Operating I LLC (ITOI) owns a 2.68-gigwatt (GW; net capacity) portfolio of seven operating gas-fired electric power plants, each in a different North American Electric Reliability Corp. (NERC) region. The portfolio consists of: Hardee Power Partners Ltd., a contracted 370-megawatt (MW) combined-cycle gas turbine (CCGT) in Florida, 51% owned by ITOI; Spindle Hill Energy LLC, a contracted 314-MW combustion turbine (CT) in Colorado, 51% owned by ITOI; Invenergy Cannon Falls LLC, a contracted 357-MW CT in Minnesota, 51% owned by ITOI; St. Clair Power L.P., a contracted 584-MW CCGT in Ontario, Canada, 100% owned by ITOI; Nelson, a mostly merchant 615-MW CCGT in Illinois, 100% owned by ITOI; Ector County Energy Center LLC, a 330-MW CT in Texas

...Partially contracted revenue provides some stable cash flows. Contracted cash flows reduce overall volatility while supporting debt service payments. Power contracts run right up to or extend beyond the term loan B maturity. While around one-third of cash flows are expected from the four contracted assets during our analysis period (through 2038 because of our amortization period) and closer to 25% during the term loan B period (2018-2025), these figures exclude short-term hedges and contracts at merchant plants and cleared capacity in the PJM Interconnection organization coming from Nelson. ITOI benefits from geographic diversity. Its seven assets are in disparate NERC regions, providing market diversity and minimal resource risk. The St. Clair plant has arrangements to store natural gas, Nelson has firm transportation on the Natural Gas Pipeline Co. of America Pipeline, and Ector is in the Permian Basin gas-gathering region. In addition, the geographic diversity mitigates risk that the...

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