In essence what happened here earlier this week is that SO via its new non-regulated business aka Southern Power, has purchased a 680 MW dual fuel peaking plant from Constellation Energy for $ 206 million. That comes to about $ 303 / kW installed.
Just a few tidbits for everyone's benefit.
The Oleander plant consists of four GE Frame 7FA gas turbines that can run on gas or oil. This plant is located near Cape Canaveral, FL and it went commercial in March of 2002. The EPC contractor was Lockwood Greene.
Mirant's Shady Hills plant in Pasco County, FL consists of three GE Frame 7FA gas turbines that can run on gas or oil and it went commercial in January of 2002. The EPC contractor was Lockwood Greene.
So, here we have two very similar plants that were built by the same EPC firm using the same type of gas turbines both for dual fuel use. One of these plants is now being sold for $ 303 / kW installed.
Therefore, the SHC ought to look into how Mirant or Blackstone have valued the Shady Hills plant.