ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE

Cogentrix has developed and implemented a set of universal operating practices governing employee safety and health, equipment maintenance and operation, budgeting and reporting, compliance with federal regulatory reporting requirements, environmental compliance and customer and community relations.

Cogentrix has operated over 40 different power plants employing technologies that include gas-fired peaking, natural gas-fired combined cycle, pulverized coal, waste coal and coal-fired circulating fluidized bed, stoker coal, trough and tube solar thermal and concentrating photovoltaic solar. Cogentrix has operated up to 23 plants at a single time and currently provides asset management and operating services for all the facilities owned by Carlyle. Each plant is assigned a General Manager who reports directly to the centralized Cogentrix operations team in Charlotte, NC.

 

Commercial Agreement Optimization
The Cogentrix asset management team is responsible for the execution of the commercial arrangements relating to power plants. These include power sales agreements, fuel supply and transportation agreements, steam sales agreements and other ancillary agreements essential for the conduct of the business. Cogentrix adheres to a practice of collaboration with power sales customers, and in its history has restructured major power sales agreements at 14 separate power plants, resulting in significant gains for both the power plants and their customers.

In addition to restructuring power contracts, the asset management team has led the Cogentrix effort in securing new agreements on power facilities to replace agreements that have been terminated or expired in accordance with their terms.

 

Fuel Procurement
The Cogentrix fuel management team possesses extensive experience in the negotiation and execution of fuel supply and transportation agreements. Since 2005, the Cogentrix fuels team has managed the supply and delivery of more than six million tons of coal per year to its coal-fired plants, arranging for appropriate rail, truck and barge services in order to support plant operations. Additionally, the Cogentrix fuels team has managed the supply of natural gas and petroleum fuel required by operating plants. This includes gas transportation and delivery nominations and scheduling, storage elections and the delivery, where appropriate, of seaborne petroleum vessels.

The fuels team also plays an important role in supporting Cogentrix’s efforts in asset management and mergers and acquisitions due diligence. The team provides detailed information on fuel pricing and availability as well as the structure and economics of various electric power markets in the U.S.