The Federal Energy Regulatory Commission on Aug. 6 signed off on the sale of the Midway gas-fired power plant in California to an affiliate of Cogentrix.
On July 10, Starwood Power-Midway LLC (Midway) filed an application requesting commission authorization for the disposition of jurisdictional facilities resulting from the sale by Starwood-PMH LLC (Starwood-PMH) of 100% of the equity interests in Midway to Cogentrix Midway Holdings LLC.
Midway is a wholly-owned subsidiary of Starwood-PMH. Starwood-PMH is indirectly owned by Starwood Energy Group Global LLC (Starwood) and by individual passive limited partner investors, who have no voting rights, other than typical limited partner rights to preserve their economic interests. Midway is an exempt wholesale generator (EWG) with market-based rate authority.
Midway owns an approximately 122-MW power plant (Midway Facility) interconnected to the transmission grid operated by the California Independent System Operator (CAISO). All the capacity from the Midway Facility is fully committed under a 15-year power purchase agreement with Pacific Gas & Electric (PG&E).
Cogentrix is a wholly-owned subsidiary of Cogentrix Power Holdings III LLC, which is a wholly-owned subsidiary of Carlyle Infrastructure Partners Power II LP (Carlyle IPP II). Carlyle IPP II is controlled by its general partner, Carlyle Infrastructure General Partner LP (CIGP). Carlyle IPP II has several passive limited partners, all of which are investment fund vehicles sponsored and managed by The Carlyle Group LP, a global alternative investment management firm. The limited partners of the Carlyle Funds also are passive investors.
Pursuant to a Purchase and Sale Agreement dated July 9, Starwood-PMH will sell to Cogentrix 100% of the equity interests in Midway. Upon consummation of the transaction, Starwood-PMH will no longer own any equity interests in Midway and Midway will be a wholly-owned subsidiary of Cogentrix.