New Roseton plant owner seeks FERC approvals to operate

CCI Roseton LLC, the prospective new owner of the oil- and gas-fired Roseton power plant in New York State, on Jan. 17 requested that the Federal Energy Regulatory Commission authorize it to sell energy, capacity, and certain ancillary services at market-based rates, and accept for filing a proposed market-based rate tariff.

It also wants the commission to grant such waivers and blanket authorizations as the commission has granted to other entities with market-based rate authorization.

CCI Roseton is a direct, wholly owned subsidiary of CCI U.S. Asset Holdings LLC (f/k/a LDH U.S. Asset Holdings LLC), which is in turn a direct, wholly owned subsidiary of Castleton Commodities International LLC. CCI Roseton was formed for the purpose of consummating a transaction in which CCI Roseton will acquire from  the bankrupt Dynegy Roseton LLC the 1,160-MW (summer rating) Roseton Units 1 and 2, each of which is an oil- and natural gas-fired steam turbine generator set located in Orange County, N.Y. The buy also includes associated interconnection facilities, and certain other property, assets, permits, and rights necessary to operate the plant, which is interconnected with the New York Independent System Operator (NYISO) grid.

Under an Asset Purchase Agreement dated Dec. 19, 2012, between CCI Holdings and Dynegy Roseton, and CCI Holdings’ assignment of its rights thereunder to CCI Roseton on Jan. 16, CCI Roseton and Dynegy Roseton filed a joint application requesting that the commission issue an order authorizing the transaction under Section 203 of the Federal Power Act on or before March 4. CCI Roseton will not begin making sales of electric energy, capacity, or ancillary services from the Roseton station until the commission grants this application for market-based rate authority.

Through its wholly owned subsidiaries, CCI owns and operates electric generation facilities and other energy assets, and engages in the marketing of physical energy commodities, including electricity, natural gas, and solid fuels, and related financial instruments.

  • CCI Rensselaer LLC is a direct, wholly owned subsidiary of CCI. CCI Rensselaer is an EWG that owns and operates a 77.4 MW (summer rating) natural gas-fired facility located in Rensselaer, N.Y. The commission has authorized CCI Rensselaer to sell electric energy, capacity and ancillary services at wholesale at market-based rates.
  • Castleton Commodities Merchant Trading LP is a direct, wholly owned subsidiary of CCI. CCMT is a power marketer authorized by the commission to sell electric energy, capacity and ancillary services at market-based rates. CCMT also engages in the buying and selling of natural gas and solid fuels.

Energy Trading Innovations LLC directly and indirectly owns approximately 95.5% of the membership interests in CCI. ETI is owned by a number of unaffiliated investors, including: Dubin & Co. LLC, which directly and indirectly owns 23.5% of the membership interests in ETI; Future Energy Investments LLC, which indirectly owns approximately 11.5% of the membership interests in ETI; and a number of other investors that each own less than 10% of the membership interests in ETI.

This is one of two plants Dynegy is selling out of bankruptcy

Dynegy Inc. (NYSE: DYN) said Dec. 10, 2012, that the winning bidders are ICS NY Holdings LLC (ICS) and Louis Dreyfus Highbridge Energy LLC (LDH Energy) for the coal- and oil-fired Danskammer and oil- and gas-fired Roseton capacity, respectively. The bidding was the result of a U.S. Bankruptcy Court-supervised auction process for the Roseton and Danskammer facilities, both located near Newburgh, N.Y. The combined cash purchase price for the two winning bids is $23m and the assumption of certain liabilities.

Roseton would be sold to LDH Energy for $19.5m in cash and LDH Energy’s assumption of certain liabilities, including outstanding tax liabilities. LDH Energy has agreed to operate under the terms of the expired union labor contract, as modified by the unilaterally implemented “last, best and final” offer made to the union on Nov. 7.

Danskammer will be sold to ICS for $3.5m in cash and ICS’ assumption of certain liabilities. Danskammer, which was rendered inoperable as a result of Superstorm Sandy, will be retired upon completing the appropriate regulatory processes. Following closing of the sale and retirement notification process, ICS will demolish any remaining structures and remediate the site.

Parent Dynegy emerged from bankruptcy protection in mid 2012, but left behind the Roseton and Danskammer capacity for sale in the bankruptcy court process.

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.