Capital Power acquires 50.15 percent interest in Washington’s Frederickson 1 natural gas generating station

The Canadian corporation Capital Power finished out 2023 by acquiring a 50.15 percent interest in the Frederickson 1 Generating Station in Pierce County, Washington for $97.5 million.

Purchased from Atlantic Power & Utilities, the move will grant Capital Power a majority stake in the 265 MW natural gas-fired combined cycle facility, while Puget Sound Energy will own the remaining interest. As a result, Capital Power will operate and maintain Frederickson and be compensated for this through an annual management fee.

The facility’s generation is contracted out until October 2030. Capital Power referred to it as well-positioned for re-contracting beyond that as a critical dispatchable and baseload asset in the Pacific Northwest. It also could prove the site for future expansion, as the company pointed to Frederickson and its adjacent lands as hosting ample room and infrastructure for additional non-emitting, flexible generation developments.