Washington, D.C. (September 12, 2016) – Ullico Inc. today announced the closing of an investment in the West Deptford Energy Station, a 751-megawatt combined cycle natural gas electric generating facility currently operating in New Jersey.
Since commencing commercial operations in November 2014, West Deptford has supplied energy, capacity, and ancillary services into the PJM Interconnection, the world's largest wholesale power market spanning 13 states.
"West Deptford is well positioned as one of the most advanced and efficient power plants in northeastern PJM and its high utilization post completion demonstrates its economic rationale," said Rohit Syal, head of acquisitions for Ullico's infrastructure investments.
To convert natural gas to electric power, West Deptford deploys two Siemens F-class combustion turbine generators and one Alstom steam turbine generator. The Project has two gas interconnections to different pipelines, Columbia Gas and Transco, and has long-term firm gas contracts to cover 100% of its fuel needs.
Ullico acquired an interest in West Deptford from an affiliate of LS Power Group, a leading developer, owner, operator and investor in power generation and electric transmission infrastructure throughout the United States. LS Power affiliates will continue to maintain interest in West Deptford and serve as its Asset Manager. O&M services will be provided by IHI Corporation. Other investors who acquired membership interest in West Deptford alongside Ullico include Marubeni Corporation, Prudential Capital Group, Sumitomo Corporation, and Arctic Slope Regional Corporation.
The project was constructed under a Project Labor Agreement between an affiliate of CH2MHill and the United Building Trades Council of Southern New Jersey and created hundreds of union construction jobs and provides ongoing operations and maintenance jobs during its useful life.
"This investment furthers Ullico's mission of generating competitive returns for our investors, while building US infrastructure, creating jobs, and helping our communities," said Edward M. Smith, president and CEO of Ullico Inc.
The project has been widely supported in its community. When construction on the project commenced in 2011, New Jersey Senate President Steve Sweeney said, "This is a great day for Gloucester County. The construction of this facility means 650 construction jobs and $107 million in PILOT payments. I have been pushing for jobs legislation at the state, and in Gloucester County we are doing it. We need to get people back to work and keep taxes under control."
Ullico Inc., currently has investments in the water, wastewater, and energy sectors and is exploring opportunities in all core sectors, including transportation and social infrastructure.
"West Deptford is a great addition to Ullico's portfolio," said Jeff Murphy, portfolio manager for Ullico's infrastructure business, "In addition to providing attractive, long term risk adjusted returns and diversification, the West Deptford investment is an essential community asset that offers Ullico the opportunity to work with world class partners."
Whitehall Capital and Credit Suisse served as LS Power's financial advisors. Morgan Lewis and Chadbourne & Parke were legal advisors to LS Power and Ullico, respectively.
For more than 85 years, Ullico, the only labor-owned insurance and investment company, has been a proud partner of the labor movement, keeping union families safe and secure. From insurance products that protect union members, leaders and employers, to investments in building projects that have created thousands of union jobs, our customers continue to trust us with protecting their families, employees and investments. The Ullico Inc. family of companies includes The Union Labor Life Insurance Company; Ullico Casualty Group, Inc.; Ullico Investment Company, Inc.; and Ullico Investment Advisors, Inc.