Despite decarbonization goals, Bridgepoint and Energy Capital Partners moving forward with risky purchase of Gavin coal-fired power plant

Energy Capital Partners, a subsidiary of Bridgepoint, is in the process of purchasing the General James M. Gavin coal-fired power plant in southeastern Ohio. The Gavin plant is the most deadly coal-fired power plant in the U.S., according to 2023 analysis by the Sierra Club, which estimated that the Gavin coal plant was responsible for 244 premature deaths per year. Health impacts from the plant extend downwind from the power plant, across the northeastern United States, from Illinois to New Jersey and New York to Florida.

Private Equity Stakeholder Project has recently offered public comments outlining some of the risks to investors of the pending Gavin sale at the Washington State Investment Board (WSIB) and the Pennsylvania Public School Employees’ Retirement System (PSERS). WSIB has had exposure to Gavin via investments with a current Gavin owner, Blackstone Capital Partners. If the sale of Gavin goes through, both WSIB and PSERS will be invested with Gavin owner Bridgepoint.

Gavin purchase is out of alignment with Bridgepoint policy

In its 2025 Responsible Investment Policy, the company states, “Bridgepoint does not invest in companies whose products, services or practices cause environmental or social harm, and where there is no path to transform the business into a positive contributor to society.” Nevertheless, through its subsidiary, ECP, Bridgepoint is purchasing one of the highest-emitting and most deadly coal fired power plants in the U.S. Despite the health and financial risks the Gavin power plant poses, ECP has stated that it does not intend to retire or transition the plant. 

Financial risks of the Gavin coal-fired power plant

Investors should be wary of the acquisition of the Gavin coal-fired power plant because of its financial risks, including high debt burden and environmental cleanup liabilities. Gavin’s current owner Lightstone, a joint venture between Blackstone and ArcLight, took out $2.1 billion in debt financing for the purchase of the plant. Although Lightstone was able to refinance its debt in 2022 and has paid down some of it, S&P estimated the company will have over $1 billion in debt outstanding at maturity in 2027.

According to EPA estimates, Gavin is responsible for $40 million in cleanup costs plus expenses to address ongoing pollution. In June 2024 the U.S. Court of Appeals affirmed that Gavin is required to clean up coal ash sitting in groundwater. In January 2025, the Gavin power plant’s Vice President signed onto a letter to the EPA, asking the agency to dismiss the cleanup regulations. In March 2025 the EPA announced it would reconsider many EPA regulations, including the coal combustion residuals rule. Gavin’s pollution has not yet been specifically addressed, and the financial risks and uncertainty tied to the plant remain

Outlook for the economics of coal is not improving

Despite President Trump’s recent executive orders aiming to bolster coal, experts are skeptical that the outlook for coal can turn around. Reporting on the executive orders, the New York Times noted, “it is still often cheaper for utilities to use a mix of gas, wind, solar power and batteries to generate electricity.” The Energy Information Administration reported an increase in the planned retirement of coal-fired power plants in 2025 over 2024, as well as the continuation of a two-decade decline in U.S. coal production.

Investors should call on ECP and Bridgepoint to retire the Gavin coal-fired power plant, and invest no further money with either firm until the retirement is planned.