CPV Three Rivers Facility reports financial closing

MORRIS — Competitive Power Ventures (CPV) Three Rivers Energy, the $1.3 billion generating station proposed for Goose Lake Township, reported its financial closing Monday and will begin construction this year, according to Nancy Norton, President & CEO of Grundy County Economic Development.

"This is an exciting day for all of us," Norton said. "They [CPV] expect to begin construction prior to the end of the year. It will be an exciting project that will be impactful to our local trades. There will be a lot of construction jobs for the next 30 months or so."

The facility is expected to begin operations in 2023. There are expected to be more than 500 union jobs during two and a half years of construction – sourced locally. There will also be 25 full time jobs, over $3 million per year in payroll and benefits, as well as significant indirect job creation regionally.

According to the CPV Three Rivers website, the CPV Three River Energy Center is a planned 1,250-megawatt natural gas-fueled combined-cycle electric generation facility to be located in Goose Lake Township. The facility will be capable of powering more than 1.25 million homes and businesses, helping to safely meet the demand for energy in Illinois with reliable, cost-effective and environmentally-responsible low emissions generation.

The project will use clean-burning natural gas and state-of-the-art technology, including two combustion turbines (“CT”), two heat recovery steam generators (“HRSG”) and two steam turbines (“ST”) to maximize efficiency. Once complete, CPV Three Rivers will be one of the cleanest, most efficient generating facilities of its kind.

The project represents over $1.3 billion in private investment, including $875 million of senior credit facilities arranged on a true club basis with broad-based support from a diverse group of 14 international financial institutions and investment from the equity partners.

The facility will sell its power into the PJM market, enough to meet the demand of up to 1.25 million homes and businesses serving Northern Illinois, including Chicago. Construction, which is led by Kiewit Power Constructors Co., will commence shortly and commercial operation is expected to begin in 2023. CPV Three Rivers is CPV’s largest project to date.

“CPV is pleased to announce the financing of CPV Three Rivers, continuing our string of success in bringing another state-of-the-art electric generating project that will modernize the nation’s electric grid by generating safe, reliable, cost effective and environmentally responsible electric power. This project located in Illinois and will serve the PJM market for years to come,” CPV CEO Gary Lambert said. “While the pandemic posed challenges throughout this process, we are thankful to our partners, lenders and host community for their perseverance and confidence in the success of this project.”

“Achieving financial close for CPV Three Rivers during a global pandemic and with commitments from 14 international lenders is a testament to CPV’s successful track record developing, financing, constructing, and operating safe, reliable, cost-effective and environmentally responsible power generation facilities,” CPV CFO Paul Buckovich said. “We’re grateful for the trust our lenders have placed in us to deliver.”

The plant will feature two combustion turbines, two heat recovery systems and two steam turbines in order to maximize efficiency. The facility will have unmatched operational flexibility which allows it to quickly respond to demand changes introduced with the growing deployment of renewable generation. The unique ability for this state-of-the-art technology to provide highly efficient, low-emitting, reliable power and to support renewables with the unmatched operating flexibility offers an optimal solution for Illinois to meet its carbon reduction goals.

"GE is honored to continue its relationship with Competitive Power Ventures by supplying advanced gas technology for CPV's third HA-powered facility," said Scott Strazik, President and CEO of GE's Gas Power business. "Our relationship with CPV is built on proven results, and we are proud to be able to provide state-of-the-art technology, services and strategic financing to help develop complex projects like Three Rivers, which will provide reliable, affordable, and sustainable electricity to CPV's customers."

The project enjoys strong support from residents, business, labor and elected leaders in Grundy County and will yield substantial local and regional benefits, including hundreds of millions of dollars in private infrastructure investment and significant new revenues for local governments and businesses. At peak construction, more than 500 union workers will be onsite. Once operational, the energy center will require a staff of 25 full-time personnel and approximately 75 additional jobs will be created to provide ongoing services to the plant.

“After years of development, I am pleased to officially welcome CPV Three Rivers to Grundy County,” said State Sen. Patrick Joyce (D-Essex). “The project will provide long-term, high-paying jobs while increasing the resiliency, security, and affordability of our power supply. CPV is a true partner for our communities and our labor force.”

CPV Three Rivers has executed a long-term redevelopment agreement that will help support Grundy County’s tax base, services, and economic development. These funds will be used to support local schools, offset reducing revenue streams, and improve infrastructure.

Throughout the development process, CPV Three Rivers has been committed to keeping the community well informed through active community outreach, a dedicated project website and an informational open house held at Coal City High School. The company will continue to proactively invest in and support the community through open dialogue and active participation in local events and organizations.

“As a staunch supporter of the CPV Three Rivers project during its development, I could not be happier to see CPV and their partners reach this critical milestone,” said State Senator Sue Rezin (R-Peru). “Not only are they enhancing the region’s energy corridor by constructing a state-of-the-art generation facility in Grundy County, but also becoming an integral part of our community, committed to supporting our first responders and local schools.”