FERC okays sale of two New York power plants to Alliance Energy

The Federal Energy Regulatory Commission on Aug. 20 approved the sale of two gas-fired power plants in New York state to affiliates of Alliance Energy Group LLC.

On July 22, Carthage Energy LLC and Allegany Generating Station LLC filed a joint application for authorization for the disposition of jurisdictional facilities resulting from: the transfer of 100% of the ownership interests in Carthage from Cayuga Energy Inc. to Alliance Energy New York LLC (AENY); and Allegany’s acquisition of the Allegany generating station and related assets from Rochester Gas & Electric (RG&E).

Carthage owns a 62.9 MW dual fuel (gas/oil) combined-cycle cogen located in Carthage, N.Y. The Carthage facility is interconnected to the transmission system owned by Niagara Mohawk Power d/b/a National Grid and under the operational control of the New York Independent System Operator (NYISO). Carthage is an exempt wholesale generator with market-based rate authority and sells all of the output from its facility into the wholesale market operated by NYISO. Carthage is owned by Cayuga, which in turn, is a wholly-owned subsidiary of Iberdrola USA Group LLC, which is a wholly-owned subsidiary of Iberdrola USA Inc.

RG&E is a direct, wholly-owned subsidiary of RGS Energy Group Inc., which in turn, is a direct, wholly-owned subsidiary of Iberdrola USA. RG&E owns a 67 MW gas-fired combined-cycle power plant located in the Town of Hume, N.Y. The Allegany facility is interconnected to the transmission system owned by RG&E. RG&E sells all of the output from the Allegany Facility into the wholesale market operated by NYISO.

Allegany Generating Station was formed for the purpose of implementing the transaction under which it will acquire and continue to operate the Allegany facility. It is a direct, wholly-owned subsidiary of AENY which is a wholly-owned subsidiary of Alliance Energy Group LLC (AEG). Through subsidiaries, AEG is engaged in electric power generation, natural gas exploration, production and transportation, and energy technology research into various forms of renewable fuels such as biodiesel and hydropower. AEG is wholly-owned by an individual, Samuel Nappi. Applicants said that Nappi does not own or control any other energy-related facilities aside from his holdings in AEG.

In addition to Allegany, AENY owns 100% of the partnership interests in:

  • Lowell Cogeneration Co. LP, the owner of a 32.5 MW facility located in Lowell, Mass.;
  • Power City Partners, the owner of a 103.1 MW facility located in Massena, N.Y.;
  • Seneca Power Partners LP, the owner of a 67.3 MW facility located in Batavia, N.Y.;
  • Sterling Power Partners LP, the owner of a 67.3 MW facility located in Sherrill, N.Y.; and
  • AG-Energy LP, which owns a 99.3 MW plant in Ogdenburg, N.Y., that is no longer in service.

Through subsidiaries, AEG owns: the Hillburn Gas Turbine, a 46.5 MW facility located in Hillburn, N.Y.; and the Shoemaker Gas Turbine, a 41.9 MW facility located in Middletown, N.Y.

In the just-approved deal, AENY will acquire 100% of the ownership interest in Carthage from Cayuga. Following the transaction, Carthage will be a wholly-owned subsidiary of AENY, which is a wholly-owned subsidiary of AEG. Cayuga will not retain any ownership interest in Carthage following the transaction. In addition, Allegany will acquire the Allegany facility and related assets from RG&E.

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.