Itochu, Chubu Elec. Form Fund to Invest in U.S. Power Biz

Itochu, Chubu Elec. Form Fund to Invest in U.S. Power Biz

Dec 27 - Jiji Press English News Service

Japanese trader Itochu Corp. and Chubu Electric Power Co. said Monday they have set up a 40-million- dollar fund to invest in U.S. power firms and learn their business skills acquired in a deregulated market.

The Itochu group contributed 30 million dollars of the fund, while the remaining 10 million dollars was put up by Chubu Electric.

The fund, called Tyr Capital LLC, will participate in an investment project led by U.S. independent power provider management firm Tyr Energy Inc.

The fund has acquired the Lincoln power station in southern Chicago jointly with major energy business investor ArcLight Capital Partners LLC. The fund plans to acquire interests in up to eight more power plants within three years.

The Lincoln plant, which started operating in 2000, has eight gas turbine generators with a total output of 672,000 kilowatts. Itochu and Chubu Electric expect an annual 10 pct return on the fund's investment in the plant.END

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