Allegheny Health Network’s CHP Transaction for AHN Wexford Hospital


Buchanan Ingersoll & Rooney PC assisted Allegheny Health Network (AHN) with negotiating and completing a combined heat and power (CHP) transaction with Peoples Natural Gas, which will support the new CHP facility intended to power, heat and cool the AHN Wexford Hospital, scheduled to open in 2021.

Residents in Pine Township and the surrounding areas will have convenient access to a wide range of clinical services when AHN Wexford Hospital opens next year. Allegheny Health Network (AHN) and Peoples Natural Gas (PNG) officials announced that the hospital will also be powered by an onsite, state-of-the-art and environmentally-friendly energy solution.

Construction of a natural gas-fired electric power generation, heating and cooling facility is currently underway on the future Wexford Hospital’s campus. A combined heat and power (CHP) system within the 18,000 square-foot, two-story power plant facility will simultaneously produce up to two megawatts of electricity and thermal energy onsite to meet all of the facility’s energy needs including electricity, heat, chilled water, hot water and steam.

The Wexford Hospital power plant project has been supported by a $1.8 million grant from the Pennsylvania Department of Community and Economic Development and the Department of Environmental Protection as part of the Alternative and Clean Energy (ACE) program. The program provides financial assistance for utilization, development and construction of alternative and clean energy projects in the commonwealth.

According to PNG, the combined heat and power system offers a number of benefits compared to conventional electricity and thermal energy production, including increased efficiency achieved from the onsite generation which eliminates wasted energy during typical transmission and distribution. The system also reduces emissions of greenhouses gases and air pollutants.

The Buchanan team was led by John Povilaitis (Picture) and Alan Seltzer.

Involved fees earner: John Povilaitis – Buchanan Ingersoll & Rooney; Alan Seltzer – Buchanan Ingersoll & Rooney;

Law Firms: Buchanan Ingersoll & Rooney;

Clients: Allegheny Health Network;

Author: Ambrogio Visconti