FERC signs off on Calpine’s sale of Broad River power plant

An official at the Federal Energy Regulatory Commission on Dec. 18 approved an aspect of the sale of the Broad River Facility power plant in South Carolina by Calpine Corp. (NYSE: CPN).

On Nov. 16, Broad River Energy LLC, Broad River OL-1 LLC, Broad River OL-2 LLC, Broad River OL-3 LLC and Broad River OL-4 LLC filed an application with FERC seeking authorization under the Federal Power Act for the transfer of 100% of the ownership interests in Broad River Energy, which operates an electric generating facility located in the Duke Energy Carolinas LLC (Duke) balancing authority area to Broad River Power LLC (BRP).

Broad River Energy is a direct wholly owned subsidiary of Calpine Power that is an exempt wholesale generator (EWG) authorized to sell power at market-based rates. Broad River Energy operates an approximately 847 MW (summer rating) dual-fuel fired simple-cycle facility. Broad River Energy leases the facility from the Broad River OL companies and has 100% leasehold interest in and control over the Broad River Facility. The output of the Broad River Facility is fully committed to Progress Energy Carolinas through two long-term power purchase agreements set to expire in 2021 and 2022.

Each of the Broad River OL companies holds legal title to an undivided 25% ownership interest in the Broad River Facility as a passive owner lessor. They currently lease the Broad River Facility from Cherokee County, S.C., under a Fee in Lieu of Taxes lease and may acquire ownership of the Broad River Facility from Cherokee County for a nominal fee.

BRP is a direct wholly owned subsidiary of Broad River Power Holdings LLC which is held by four affiliated funds. These entities are controlled by Energy Capital Partners LLC and Energy Capital Partners II LLC, which are engaged in the development and acquisition of, and investment in energy infrastructure assets and the related ownership, operation and management of these assets.

Energy Capital Partners II LLC indirectly controls public utilities that own generation in the ISO New England and PJM Interconnection geographic markets and EquiPower Resources Management LLC, a power marketer engaged in energy marketing and management throughout the United States. Energy Capital Partners LLC has an indirect ownership interest in a public utility that owns and operates an electric generation facility in the New York Independent System Operator geographic market and ECP Energy I LLC, a power marketer. Neither Energy Capital Partners II LLC nor Energy Capital Partners LLC own or control any generation in the Duke balancing authority area.

Under the proposed transaction, BRP will purchase and Calpine Power will sell 100% ownership interest in Broad River Energy and Broad River OL-1 LLC; Broad River OL-2 LLC; Broad River OL-3 LLC; and Broad River OL-4 LLC.

The applicants said this deal raises no market power issues and FERC official Steve Rodgers signed off on that proposition.

Calpine Corp. indicated during its Nov. 6 earnings call that it was selling the Broad River plant.

Companies control various gas-fired plants in the Northeast

ECP II indirectly controls the following public utilities, said the Nov. 16 application with FERC by the companies, none of which owns or controls any generation in the Duke or PEC balancing authority areas:

  • Dighton Power LLC: Dighton owns and operates an approximately 140 MW (summer) natural gas-fired facility and related interconnection facilities located in Dighton, Mass., within the ISO-NE balancing authority area.
  • EquiPower Resources Management LLC: EquiPower Resources is engaged as a power marketer in energy management and marketing activities throughout the United States. EquiPower Resources, which does not own, operate or control any generating or transmission facilities, has been granted authorization to make wholesale sales of electric capacity, energy and ancillary services at market-based rates.
  • Lake Road Generating Co. LP: Lake Road owns and operates an approximately 750 MW (summer) natural gas-fired, combined-cycle facility and related interconnection facilities located near Killingly, Conn., within the ISO-NE balancing authority area.
  • Liberty Electric Power LLC: Liberty Electric owns and operates an approximately 541 MW (summer) combined cycle, natural gas-fired facility and related interconnection facilities located in Delaware County, Pa., within the PJM-East submarket of the PJM balancing authority area.
  • MASSPOWER: MASSPOWER owns and operates an approximately 255.6 MW (summer) gas- and oil-fired, combined-cycle facility located in Indian Orchard, Mass., within the ISO-NE balancing authority area.
  • Milford Power Co. LLC: Milford Power owns and operates an approximately 507 MW (summer) gas- and oil-fired, combined-cycle facility located in Milford, Conn., within the SWCT submarket of the ISO-NE balancing authority area.
  • Red Oak Power LLC: Red Oak owns an approximately 776 MW (summer) combined cycle, natural gas-fired facility and related interconnection facilities located in Middlesex County, N.J., within the PJM balancing authority area.

In addition, ECP I, through various entities not included in the partnerships described above, has an indirect ownership interest in Empire Generating Co. LLC. Empire owns and operates an approximately 672 MW (winter rating) facility and related interconnection facilities in the City of Rensselaer and the towns of East Greenbush and North Greenbush, N.Y., located in the New York ISO balancing authority area.

ECP I also owns, through various entities not included in the partnerships described above, ECP Energy I LLC. ECP Energy I is a power marketer that does not own, operate or control any generation or transmission facilities. ECP Energy I has been granted authorization to make wholesale sales of electric capacity, energy and ancillary services at market-based rates.

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.