Hull Street Energy has completed its acquisition of two major Midwest generating stations serving the PJM Interconnection, expanding its position in the market for dispatchable power.

The Maryland based investment firm announced the closing on August 26 after first revealing the transaction in March.

The acquired facilities are the 677 MW Lee County Generating Station in Illinois and the 586 MW Tait Electric Generating Station in Ohio.

Lee is fueled by natural gas, while Tait has dual fuel capability that can support operational flexibility during changing market and fuel conditions.

Together, the stations comprise Hull Street Energy’s GridFlex Portfolio and add 1,263 MW of generating capacity under the firm’s ownership. Financial terms of the transaction with Rockland Capital were not disclosed by either company.

“Dispatchable resources are increasingly important as the resource mix becomes more intermittent and demand grows.

This is particularly true in PJM where declining reserve margins are increasing the need to retain and improve assets like Lee and Tait,” said Sarah Wright, founder and managing partner of Hull Street Energy.

Wright’s comments place the acquisition squarely within PJM’s tightening capacity environment.

As electricity demand rises and variable renewable generation becomes a larger part of the supply mix, operators are placing greater value on plants that can respond when system conditions require additional output.

The GridFlex assets join Hull Street Energy’s Milepost Power fleet, bringing the company’s total ownership to nearly 5 GW of gas fired and dual fuel generation capacity across the United States. Hull Street said that scale establishes it as one of the country’s largest privately held power producers.

The transaction also highlights continued investor interest in existing thermal generation that can provide capacity, reliability, and operating flexibility.

Such plants are gaining strategic importance as utilities and grid operators confront shrinking reserve margins, accelerating data center demand, and delays affecting new generation and transmission projects.

Hull Street financed the acquisition with equity supplied by funds under its management, along with committed senior secured debt financing.

The structure gives the company control of two established PJM resources without publicly revealing the purchase price or other commercial terms.

Santander and Investec Inc. served as joint lead arrangers and joint bookrunners for the GridFlex financing. Santander also acted as administrative agent, coordinating the financing package supporting the acquisition.

Troutman Pepper Locke provided legal counsel to Hull Street Energy.

PEI Global Partners, LLC and Houlihan Lokey advised on financial matters, while Bracewell served as legal counsel to Rockland Capital.

Rockland Capital, headquartered in Texas, was established in early 2003 to pursue selected investments across the power and energy infrastructure markets.

The private equity company has invested in energy projects in both the United States and the United Kingdom.

The acquisition follows another significant Hull Street transaction completed earlier in the year.

The firm acquired a broad portfolio of renewable generation assets from FirstLight USA, extending its holdings beyond gas fired and dual fuel power plants.

That portfolio includes Northfield Mountain, a 1,168 MW pumped storage hydroelectric facility in Massachusetts.

Northfield Mountain is the largest energy storage facility in New England and provides substantial capacity for storing energy and supporting regional grid operations.

Hull Street also gained 14 hydroelectric stations located across Connecticut, Massachusetts, and Pennsylvania through the FirstLight transaction.

Three operating solar and battery facilities in the Northeast were included as well, adding further diversity to the company’s generation and storage holdings.

The Lee and Tait purchase strengthens the dispatchable side of that expanding portfolio at a consequential moment for PJM.

With demand growth intensifying and reserve margins under pressure, the two stations give Hull Street additional assets capable of contributing power when regional system needs become most acute.