Municipal utility in California opts to sell generation, transmission assets for $342 mil

摘要

For the municipal utility in Vernon, California, getting out of the generation business apparently was attractive enough to prompt a sale of its transmission and generation assets in a deal valued at $342 million.rnFor the buyers for the assets, private equity firm Natural Gas Partners and industry executive Paul Prager, the deal marked their second purchase of assets this year and it fits nicely with their strategy of buying facilities with long-term contracts backing them up, NGP and Prager said in a joint statement.rnUtility officials could not be reached last week to talk about their decision. Vernon's Light and Power Department's electricity rates, which it calls some of the least expensive commercial and industry rates in California, have been a calling card to attract industry, and the city has been active in state and federal regulatory proceedings. It was the first municipal system to join the California Independent System Operator and it has been looking to build additional generation in the region to meet growing demand.