FERC approves sale of two New York gas plants to Lakeside affiliates

The Federal Energy Regulatory Commission on Nov. 30 approved the sale of two gas-fired power plants in New York to affiliate of Lakeside Energy LLC.

On Oct. 24, Lakeside New York LLC and WPS Empire State Inc., plus WPS Beaver Falls Generation LLC and WPS Syracuse Generation LLC, had filed a joint application requesting FERC authorization for a disposition of jurisdictional facilities. Applicants requested commission authorization for a transaction in which WPS Empire State will sell, and Lakeside New York will acquire, all of the outstanding membership interests in WPS Beaver Falls and WPS Syracuse. The FERC-jurisdictional facilities involved consist of interconnection facilities, WPS Beaver Falls’ and WPS Syracuse’s market-based rate tariffs, and any related agreements and associated books and records.

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 purchase 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 Inc. Integrys Energy Services is an energy marketing and services company which, through various subsidiaries, offers energy and related services to wholesale and retail customers in the United States. Integrys Energy Services indirectly owns, and operates through its subsidiaries, electric generation facilities in Wisconsin, Illinois, Pennsylvania, and New York. Integrys Energy Services in turn is an indirect subsidiary of Integrys Energy Group (NYSE: TEG), an electric and natural gas utility holding company headquartered in Chicago. Its other subsidiaries include Wisconsin Public Service Corp. and Upper Peninsula Power Co. WPS Empire State also owns all of the membership interests in WPS Beaver Falls and WPS Syracuse, but does not directly own any jurisdictional facilities.

  • WPS Beaver Falls is a wholly owned subsidiary of WPS Empire State. WPS Beaver Falls owns and operates an approximately 95-MW combined-cycle facility 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 is a wholly owned subsidiary of WPS Empire State. WPS Syracuse owns and operates an approximately 109-MW combined-cycle facility in Solvay, N.Y. WPS Syracuse is an EWG and is authorized to sell power at market-based rates.

The agreement between the companies provides that WPS Empire State will sell to Lakeside New York 100% of the membership interests in WPS Beaver Falls and WPS Syracuse. Upon closing of this deal, WPS Beaver Falls and WPS Syracuse will be direct subsidiaries of Lakeside New York and will be wholly owned, indirect subsidiaries of Lakeside Energy.

“The acquisition of these facilities is consistent with our strategy of investing in assets where we can create value implementing operational and commercial improvements,” said Christopher Fanella, Executive Vice President of Lakeside Energy, in a Nov. 1 announcement about this deal. “We are excited about the strong local operating team. These are the type of assets we want to continue to build our company around.”

Joel Jansen, Managing Director-Energy Assets for Integrys Energy Services, noted that this transaction is consistent with the company’s long-term strategy for its energy assets portfolio, which is to sell the traditional, central power plants and focus more on distributed, renewable energy projects.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.