Arroyo Energy

Arroyo Energy describes itself as "a wholly owned subsidiary of J P Morgan & Co that "makes principal investments in energy-related assets." The company was established in 2003 and is located in Houston, Texas. Arroyo Energy Investors "has closed the purchase or sale of more than 60 power-related project companies, played key roles in 13 complex power purchase agreement restructurings and associated refinancing, and completed dozens of highly structured, long-term energy commodity transactions." It is a unit of Bear, Stearns & Co., Inc., an investment banking and securities trading and brokerage firm.

Existing Coal Plants
On December 20, 2006 Arroyo purchased 100% of the interests in Central Power & Lime, from Delta Power Company. All of its capacity and energy are committed under an intermediate-term contract with Progress Energy Florida.

Plant conversion
In 2011 Florida Power (an affiliate of Arroyo Energy and JPMorgan Chase) proposed to convert the plant from a 150 megawatt coal power plant to a 70 to 80 MWg woody biomass-fueled power plant. The project will require internal structural modifications to the pulverized coal boiler to convert it to a biomass-fired grate-suspension boiler. The existing steam turbine electric generator will be retained to generate electrical power. On December 16, 2011, the Florida DEP gave notice of its intent to issue an air permit for the project.

Management
Arroyo co-president Pamela Baden was the senior vice president of Mergers and Acquisitions at El Paso Merchant Energy, where she led the divestiture of 20 project companies, including sales to Mirant, TransCanada, Montana Dakota Utilities (MDU), and TransAlta, which resulted in realized gains of $150 million. She also worked as managing director at Enron Power Marketing until her departure from Enron in 1997.

Arroyo's other co-president David T. Field was managing director and head of Mergers and Acquisitions at El Paso Merchant Energy, and was principal and founder of Cinergy Capital & Trading, a boutique investment group. He developed and executed a plan of acquiring and restructuring above-market "qualifying facility" power contracts, and realized net profits of more than $35 million.

Contact Details
16945 Northchase Drive Suite 2100 Houston, TX 77060 Phone: 832-601-2600 Fax: 713-250-3005 Website: http://www.arroyoenergy.com/aboutus.htm

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