CPV Shore plant due for commercial operation by June 2017

An interconnection agreement with PJM Interconnection for the gas-fired CPV Shore LLC power project in New Jersey has a June 1, 2017, deadline for commercial operation of this facility.

PJM on July 29 submitted to FERC an executed interconnection service agreement (ISA) among PJM, CPV Shore LLC and Jersey Central Power & Light.

The CPV Shore ISA facilitates the interconnection to the PJM system of a 785-MW generating facility located in Woodbridge Township, N.J. On or before June 1, 2017, CPV Shore must demonstrate commercial operation of all generating units. This will be called the Woodbridge Energy Center and will be a 2×1 combined-cycle facility.

FERC on July 3 approved a purchase by ArcLight Capital Partners LLC of 50% of the in-development CPV Shore power plant. On May 31, CPV Shore LLC applied with FERC for authorization for the disposition of jurisdictional facilities resulting from the acquisition of 50% of the indirect equity interests in CPV Shore by a special-purpose entity, which will be a wholly owned direct or indirect subsidiary of the ArcLight Energy Partners Fund V LP

Competitive Power Ventures Holdings LLC (CPV), through its subsidiaries, develops, owns, and manages natural gas-fired and renewable generation facilities throughout the United States. Warburg Pincus Private Equity IX LP and Warburg Pincus Equity Partners Liquidating Trust have a collective ownership interest of 95.2% of the voting shares in CPV. Individuals hold the remaining outstanding ownership interests in CPV.

CPV Shore, an indirect wholly owned subsidiary of CPV, is developing and will own and operate a 725 MW (nameplate), gas-fired combined-cycle facility (CPV Shore Facility) that will be interconnected to transmission facilities owned by Jersey Central Power & Light within the PJM footprint. The plant is expected to be in-service in 2015, said documents in that prior case. With respect to competition, all of CPV Shore’s electric generating capacity is committed to be sold into the PJM wholesale markets. 

CPV Shore said in its May 31 application that it participated in PJM’s 2012 forward capacity auction (Reliability Pricing Model or “RPM”) and cleared 661 MW of capacity for delivery in the 2015/2016 delivery year. In PJM’s 2013 auction, CPV Shore cleared its capacity for delivery in the 2016/17 delivery year. CPV Shore also participated in a New Jersey solicitation conducted in accordance with the requirements of the New Jersey Long-Term Capacity Pilot Program and was selected, along with two other (unaffiliated) entities, to enter into Standard Offer Capacity Agreements with four Electric Distribution Companies with a term of 15 years.