Distributed Power Partners with Investment Fund

April 27, 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 reached tentative agreement with an investment fund for up to $7 million of project financing. The project financing will pay for the costs of acquiring and developing approximately 15 cogeneration facilities. The investment fund will advance 100 percent of the $7 million of financing, and become partners with Distributed Power in the ownership of the 15 projects.

The investment fund, the Power Project Fund I LLC, is a newly formed, Wall Street-based fund established to invest in distributed generation facilities. According to Brad Dotson, President of Distributed Power, the project financing from the Power Project Fund I will pay for valuable assets. "With this project financing, DDPW is in position to produce significant future revenues and free cash flow. The 15 projects that we expect to acquire and develop with the proceeds of this investment, located in California and New York, are expected to provide Distributed Power and their project investment partner with approximately $6.5 million in annual gross consolidated revenues, and generate approximately $2.5 million annually of free cash flow."