Capital Power Investments LLC, Rumford Power and Emera Inc. on Sept. 20 asked for Federal Energy Regulatory Commission authorization for the sale of 100% of the equity interests in Rumford (owner of a gas-fired power plant) to Emera.
Capital Power Investments owns 100% of the equity interests in Rumford. Rumford is an exempt wholesale generator (EWG) that is authorized by the commission to make wholesale sales of electric energy, capacity and certain ancillary services at market-based rates. Rumford owns an approximately 244 MW (summer rating), 269 MW (winter rating), natural gas-fired facility located in Rumford, Maine, which is interconnected to the transmission system controlled by ISO New England.
Capital Power Investments is controlled by Canada-based Capital Power (TSX: CPX). The application noted that the Rumford buyer, Emera, owns other power interests in New England, but that this raises no market power issues. Emera holds direct or indirect interests in certain entities conducting business in New England, as follows:
- All voting and substantially all non-voting interests in Bangor Hydro Electric, a public utility that owns electric transmission and distribution assets, as well as 14 MW (nameplate) of generation assets, in Central Maine (in the ISO-NE);
- All voting interests in Maine Public Service, a public utility that owns electric transmission and distribution assets in Northern Maine (which is outside of ISO-NE);
- All interests in Emera Energy Services, a public utility involved in the trading of natural gas and electricity in the United States, and in Emera Energy Services Subsidiaries Nos. 1 through 5, LLC, market participants in the ISO-NE markets;
- An approximate 24.5% interest in Algonquin Power & Utilities, a diversified electrical power generation and utility infrastructure company which owns approximately 73.4 MW (nameplate) of generating assets in ISO-NE;
- A 50% interest in Bear Swamp Power Co. LLC, the owner of two hydroelectric facilities in northern Massachusetts with total capability of 599 MW (nameplate);
- A 21.7% interest in Maine Electric Power, the owner of a 345 kV transmission line connecting transmission lines in New Brunswick, Canada, with those in Wiscasset, Maine; and
- A 49% interest in Northeast Wind Partners II LLC, the parent of 10 wind generating facilities and related assets in New England and New York with a total capacity of approximately 418.7 MW (nameplate).
Under the proposed transaction, Capital Power Investments will sell 100% of the equity interests in Rumford to Emera or a wholly-owned subsidiary thereof, which will result in a change in control of Rumford and the Rumford facility. “The Transaction is consistent with the public interest because it will not have an adverse effect on competition, rates or regulation,” the application said.
Canada-based Emera (TSX: EMA) announced Aug. 28 that it has entered into an agreement to purchase three combined-cycle gas-fired facilities in New England from Capital Power. The transaction will add 1,050 MW to Emera’s generation capacity in the northeast, and represents a total investment of US$541m, said Emera. The facilities, all of which are of recent vintage, are Bridgeport Energy (520 MW) in Bridgeport, Conn.; Tiverton Power (265 MW) in Tiverton, R.I.; and Rumford Power (265 MW) in Rumford, Maine.
”These are quality assets, in a region Emera knows very well, having operated in the New England gas and electricity markets for more than a decade,” said Chris Huskilson, President and CEO of Emera, at the time. “Adding gas generation to our existing generation portfolio of wind and hydro assets in the northeast has been a strategic objective for Emera. We are pleased to have acquired these particular assets, which are highly efficient, well situated, and low emitting, and which we believe can deliver value to our business.”