The Federal Energy Regulatory Commission on Oct. 25 approved the sale by Sunbury Holdings LLC of a 30-MW, coal-fired plant in Pennsylvania.
On Sept. 26, WPS Westwood Generation LLC and Sunbury Holdings filed an application under section 203(a)(1)(A) of the Federal Power Act requesting commission authorization for the sale by Sunbury, an indirect subsidiary of Integrys Energy Group (NYSE: TEG), of all of its interests in Westwood to Olympus Westwood Holdings LLC, a newly formed indirect subsidiary of Olympus Power LLC.
The affected jurisdictional facilities are the interconnection facilities, a market-based rate tariff, a reactive power rate schedule, and any related agreements, books, and records. Westwood owns and operates a 30-MW, coal-fired facility located in Tremont, Pa., within the PJM Interconnection LLC balancing authority area (BAA). Westwood is an exempt wholesale generator (EWG) authorized by the commission to sell energy, capacity, and ancillary services at market-based rates.
Westwood is wholly owned by Sunbury, which, in turn, is indirectly wholly owned by Integrys Energy Services, which is an energy marketing and services company that indirectly owns and operates electric generation facilities in Wisconsin, Illinois, Pennsylvania, and New York.
Olympus Westwood Holdings, a newly-formed special purpose entity created for the purpose of this transaction, is an indirect and wholly owned subsidiary of Olympus. Olympus is a privately owned, independent power company that owns and operates projects, and provides operating and maintenance services to its own projects and to third parties. All of Olympus’s project companies are either qualifying facilities (QFs) or EWGs. Olympus and its affiliates currently own or control less than 105 MW in the PJM BAA. Olympus and its subsidiaries own no transmission facilities aside from those limited interconnection facilities necessary to connect the Olympus project companies to the transmission grid.
“Under a purchase and sale agreement between Sunbury and Olympus Westwood Holdings, Sunbury will sell all of its membership interests in Westwood to Olympus Westwood Holdings, which is a newly formed indirect subsidiary of Olympus,” said the FERC decision. “In connection with the Proposed Transaction, Applicants state that Olympus will separately sell to Integrys its interest in Park Place Solar Power, LLC, which owns 398 kilowatts of generating capacity in multiple facilities. Applicants state, however, that all of these facilities operate under net metering provisions under state law, make no net sales back to the grid over the relevant billing period, and thus make no Commission jurisdictional sales.”
The applicants stated that Olympus currently owns or controls less than 105 MW in the PJM control area and that the net output being acquired through the proposed transaction is only 30 MW.
The Oct 25 approval was from Steve Rodgers, Director, FERC’s Division of Electric Power Regulation-West.
The Integrys Energy Services website shows the Westwood plant as a 30-MW facility that uses a circulating fluidized bed boiler and is fired by waste coal.