On December 23rd 1994, the generation assets of the Trinidad and Tobago Electricity Commission (T&TEC) were divested. These assets consisted of the Power stations at Penal, Pt. Lisas and Port of Spain. This divestment exercise required an amendment of the Electricity Act. This T&TEC Amendment Bill was passed in Parliament on December 16th, 1994.
The Power Generation Company of Trinidad and Tobago (PowerGen) was established on December 23rd, 1994. Ownership of this new entity consisted of a government shareholding via T&TEC of 51% in the company and a divestment of the remaining 49% of its shareholding to Atlanta – based Southern Electric International and AMOCO Energy Resources.
The majority of PowerGen’s initial employees at our power stations came across from T&TEC as part of the divestment exercise. Additionally, PowerGen was awarded a 15-year Power Purchase Agreement to provide 745 Megawatts and 819 megawatts from 1998 onward. PowerGen then undertook a two-year refurbishment programme at all of the company’s facilities.
PowerGen’s shareholders have changed over the last 20 years from the initial shareholders of T&TEC, Southern Electric International and AMOCO Energy Resources. Today, the shareholders in the Company are the Trinidad and Tobago Electricity Commission with a 51% shareholding, MaruEnergy Trinidad LLC (owned by Japanese multinational - Marubeni) with a 39% shareholding and NEL Power Holdings Limited with a 10% ownership.
In December 2014, a new Power Purchase Agreement (PPA) was signed between the government and PowerGen. The PPA will cover a period of 15 years ending in 2029. PowerGen is contracted under (i) an Amended and Restated 1994 Power Purchase Agreement (“Revised 1994 PPA”) with T&TEC to provide 624 MW of electricity until 2029; and (ii) a 2005 Power Purchase Agreement (“2005 PPA”) with T&TEC to provide 208MW until 2037.