News

Distributed Power Acquires Two Cogeneration Facilities

February 03, 2004 by Jeff Shepard

Distributed Power Inc. (Solana Beach, CA), an owner of distributed generation facilities providing on-site electric power and energy to industrial and commercial customers, announced that it has signed a memorandum of understanding to purchase two cogeneration facilities. Distributed Power will purchase each facility for cash through a special purpose project investment entity, in each case funded by third-party investors acting as partners with Distributed Power.

The assets to be purchased include two separate operating electric power generation units. The first project serves a hotel south of Los Angeles, CA. The second project serves a hotel in mid-town Manhattan in New York City. Each project contains equipment manufactured and packaged by Hess Microgen LLC, as well as the project's related cogeneration energy purchase agreements, each of which has approximately four years remaining. The projects are expected to provide Distributed Power and its project partnerships with over $3,383,486 in gross consolidated revenues over the remaining term, and generate approximately $1,187,986 of free cash flow during the same period.

Distributed Power President Brad Dotson stated, "The two projects we are buying are unique. Each one is a showcase project, and will give our investors and customers on both the West and East Coasts a clear view of the product we intend to offer the growing small packaged cogeneration market. We believe that the equipment and applications represented by the two projects portrays the best scenarios available for this market."