The new Revel Entertainment Casino and Hotel, scheduled to open
next year in Atlantic City, N.J., will be partly powered by a
cogeneration facility developed by ACR Energy Partners LLC.
Cogeneration facilities (also known as combined heat and power, or
CHP) capture the heat that is emitted during the generation of
electricity and use it for heating purposes rather than letting it
escape into the environment. The transactions that led to the
finalization of the $160 million project were structured by Ira
Megdal, co-chair of Cozen O'Connor's energy, environment
and public utility practice.
There were three main components to the deal. First, because ACR
will own and maintain the CHP facility and sell back the energy to
Revel, a lease agreement was required whereby ACR would lease real
estate on the casino's premises from Revel. Second, there had
to be an agreement for the construction of the CHP facility itself.
Lastly, Cozen O'Connor structured an energy sales
