Washington, D.C. (September 28, 2016) – Ullico Inc. today announced the closing of a 13.7 percent equity investment in the CPV Towantic Energy Center project, a 785 MW combined-cycle natural gas electric generating facility being constructed in southwest Connecticut. Ullico purchased the equity stake from GE (NYSE: GE) unit, GE Energy Financial Services, who will retain a 35.3 percent interest in the project. An affiliate of Competitive Power Ventures (“CPV”) will continue to own 51 percent equity interest in the Towantic project. This facility will sell energy, capacity, and ancillary services into ISO-New England, a wholesale power market spanning six states in the New England region.
“The project is strategically located in a region with high barriers to entry due to siting and permitting challenges and deploys the state-of-the art GE 7H-class turbines, representing a premier investment opportunity in ISO-New England,” said Rohit Syal, head of acquisitions for Ullico’s infrastructure business. “This ultra-efficient generating unit supports high utilization and margins and its dual fuel capability enhances resilience of power infrastructure in Connecticut during peak winter periods.”
Approximately 800 union construction jobs are expected to be created during peak construction, as well as approximately 25 permanent jobs. In addition to the direct economic development generated by the project, numerous community benefits were provided, including the construction of a new two-mile road providing direct access into the Oxford business park from the I-84 interstate. This was all accomplished through a variety of supportive partners. “This is a great project, and the jobs created by this major energy infrastructure investment are substantial and extremely welcomed by the hard-working construction tradespeople of Connecticut," said Dave Roche, President of the Connecticut State Building Trades Council.
“This project demonstrates Ullico’s commitment to creating good paying jobs and improving the lives of working families across Connecticut,” said Edward M. Smith, President and CEO of Ullico Inc. “This is an example of how we can invest in the future energy needs of New England as it moves away from older, less efficient facilities.”
CPV will serve as the asset manager, and Gemma is providing the construction services. GE will provide major maintenance for its equipment while the balance of plant maintenance and operations will be provided by NAES Corporation.
"We are extremely pleased to have Ullico joining us as a partner in this remarkable new energy project which showcases GE's most advanced and efficient new generation technology," said Gary Lambert, CPV President and CEO. "This project will provide ultra-low emission, reliable and affordable energy to power New England for decades to come. We could not ask for better partners than GE and Ullico, and the support of the hard-working tradespeople of Connecticut who are bringing this project to life."
“The Towantic project has sustainable long-term competitive advantages due to location and superior GE technology. We see this investment as a great complement to Ullico’s diverse portfolio of essential infrastructure assets.” said Jeff Murphy, portfolio manager for Ullico’s infrastructure business.
Ullico Inc., through its infrastructure business, currently has investments in the water, waste water, and energy sectors and is exploring opportunities in all core sectors.
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.