Units of Integrys Energy Services applied Oct. 24 at the Federal Energy Regulatory Commission for permission to sell two gas-fired power plants in New York State to Lakeside Energy LLC.
WPS Empire State Inc., WPS Beaver Falls Generation LLC and WPS Syracuse Generation LLC, plus Lakeside New York LLC, filed the joint application. WPS Empire State would sell, and Lakeside New York will acquire, all of the outstanding membership interests in WPS Beaver Falls and WPS Syracuse. Following the closing of the transaction, WPS Beaver Falls and WPS Syracuse will be wholly owned subsidiaries of Lakeside New York.
Lakeside New York is a wholly owned subsidiary of Lakeside Energy LLC, a private equity firm committed to providing capital to create profitable growth by acquiring, financing, owning, and operating energy companies and assets in North America. Lakeside New York is a special-purpose entity created for this deal and does not currently own or control any jurisdictional facilities.
WPS Empire State is a wholly owned subsidiary of WPS Power Development LLC, which in turn is a wholly owned subsidiary of Integrys Energy Services. Integrys Energy is an energy marketing and services company which, through various subsidiaries, offers energy and related services to wholesale and retail customers in the U.S. Integrys Energy indirectly owns, and operates through its subsidiaries, electric generation facilities in Wisconsin, Illinois, Pennsylvania, and New York. Integrys Energy in turn is an indirect subsidiary of Integrys Energy Group (NYSE: TEG), an electric and natural gas utility holding company out of Chicago.
The plants involved in this deal are:
- WPS Beaver Falls, a subsidiary of WPS Empire State, owns and operates an approximately 95-MW combined-cycle facility located in Beaver Falls, N.Y. WPS Beaver Falls is an exempt wholesale generator (EWG) and is authorized to sell power at market-based rates.
- WPS Syracuse, a subsidiary of WPS Empire State, owns and operates an approximately 109-MW combined-cycle facility located in Solvay, N.Y. WPS Syracuse is also an EWG and authorized to sell power at market-based rates.
The Oct. 22 sale agreement between the parties provides that WPS Empire State will sell to Lakeside New York 100% of the membership interests in WPS Beaver Falls and WPS Syracuse. The jurisdictional facilities that are the subject of the transaction are the interconnection facilities associated with the WPS facilities, WPS Beaver Falls’ and WPS Syracuse’s market-based rate tariffs, and any related agreements and associated books and records. The application said there are no issues of market power with this transaction.