A Federal Energy Regulatory Commission official on Feb. 25 signed-off on the change of control for the oil- and gas-fired Roseton plant, part of a recent bankruptcy case involving New York affiliates of Dynegy (NYSE: DYN).
On Jan. 16, Dynegy Roseton LLC and CCI Roseton LLC filed a joint application under the Federal Power Act (FPA) requesting commission authorization for a transaction. Under this deal, Dynegy Roseton, which currently leases and operates the 1,160-MW Roseton Generating Station Units 1 and 2 located in Orange County, N.Y., and associated interconnection facilities, will acquire legal and beneficial ownership of the plant from the passive lessor, Roseton OL LLC, and then sell the Roseton plant and certain other property, assets, permits, and rights associated with the facility to CCI Roseton.
Dynegy Roseton is a wholly-owned subsidiary of Hudson Power LLC, which is, in turn a direct, wholly-owned subsidiary of Dynegy Northeast Generation. Dynegy Roseton is an exempt wholesale generator (EWG) with market-based rate authority that currently leases and operates the Roseton Generating Station. The plant is interconnected with the transmission grid controlled by the New York Independent System Operator (NYISO).
The Roseton Generating Station, including interconnection facilities, is leased from Roseton OL under a lease entered into as part of a sale/leaseback arrangement. Pursuant to the lease, Dynegy Roseton controls the operation of, and sale from, the Roseton Generating Station.
CCI Roseton is a direct, wholly-owned subsidiary of CCI Holdings, which is in turn a direct, wholly-owned subsidiary of Castleton Commodities International LLC. CCI Roseton is a special purpose vehicle that was formed specifically for the purpose of owning and operating the Roseton Generating Station and the other acquired assets. Dynegy Roseton will transfer the acquired assets to CCI Roseton.
The applicants said that CCI Roseton is not currently a “public utility” as of the filing date for this application, but it is concurrently submitting an application for commission authorization to sell electric energy, capacity, and ancillary services at market-based rates (as well as a self-certification of EWG status), and will therefore likely be a “public utility” on or before the date the proposed transaction is consummated.
Through its wholly-owned subsidiaries, CCI owns and operates generation facilities and other energy assets, and engages in the marketing of physical energy commodities, including electricity, natural gas and solid fuels, and 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 gas-fired facility located in Rensselaer, N.Y.
- Castleton Commodities Merchant Trading LP (CCMT), a direct, wholly-owned subsidiary of CCI, 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.