Partners in $2.2 Billion Deal to Buy California Gas Plants

The transaction — comprising the 1.9-gigawatt portfolio and Middle River Power, the operator of the plants — has an enterprise value of $2.2 billion, Partners said in a statement Tuesday.

California is facing rising demand for electricity on a grid that’s increasingly generated using wind and solar. Middle River develops on-site storage systems at some of its plants, using batteries that are charged with surplus renewable energy. These hybrid assets can help maintain power flowing across the grid when consumption climbs.

“Middle River’s hybridization strategy for the portfolio enhances grid reliability in a cost-effective manner,” Patrick Langan, managing director for infrastructure Americas at Partners Group, said in the statement.

Partners Group’s infrastructure business has $27 billion in global assets under management. The company was advised by Davis Polk & Wardwell on the transaction. Guggenheim Securities and Morgan Stanley acted as financial advisers for Avenue Capital and Latham & Watkins was legal counsel.