Media Coverage

Carlyle/Riverstone agree to take a stake in 55-MW geothermal project in California

Global Power Report

June 15, 2006

The Carlyle/Riverstone Renewable Energy Infrastructure Fund I has entered into an agreement to purchase a stake in Bottle Rock Power, owner of a 55-MW geothermal plant in the Geysers, Lake County, California, from US Renewables Group. Financial terms were not released.

The New York-based private equity fund on June 8 said it would acquire a "significant," though undisclosed, stake in the plant. Under the terms of the convertible note and partnership interest purchase agreement, Carlyle/Riverstone said it intends to acquire an ownership stake and fund additional capital through a convertible note. It is one of the first investments from the group's $685 million renewable energy infrastructure fund.

Bottle Rock plans to continue to refurbish the steam field at the facility and plans to restart the plant within the next six months. Before the end of 2007, Bottle Rock expects to produce approximately 260,000 MWh/year of baseload renewable power for sale to Pacific Gas and Electric under a long-term power purchase agreement.

The Bottle Rock facility was originally built, owned and operated by the California Department of Water Resources, which closed the facility in 1990 and subsequently sold it to several investors in 2001 that formed Bottle Rock. US Renewables Group purchased a majority stake in Bottle Rock in late 2005.

US Renewables Group manages a series of private equity funds that acquire, develop and operate renewable energy projects. Riverstone Holdings and The Carlyle Group are the co-general partners of Carlyle/Riverstone Global Energy and Power Funds.

Copyright 2006 The McGraw-Hill Companies, Inc.

Media Contacts:

Steven Gottlieb
ZENO Group
Tel: (877) 526-0450
steven.gottlieb@zenogroup.com