CPV Shore seeks approval of sale of minority stake in itself

The CPV Shore LLC affiliate of Competitive Power Ventures, which is building a gas-fired power plant in New Jersey, applied Oct. 29 with the Federal Energy Regulatory Commission for approval of a sale of interests in CPV Shore to John Hancock Life Insurance.

The deal would involve the transfer of certain indirect membership interests in CPV Shore from Shore Co-Investment Holdings LLC, a wholly-owned indirect subsidiary of ArcLight Energy Partners Fund V LP, to John Hancock Life Insurance Co. (U.S.A.) (JHLIC) or an affiliate of JHLIC. Following the transaction, JHLIC will own a non-managing 11.22% membership interest in CPV Shore Holdings LLC, which directly owns 100% of CPV Shore LLC.

The remaining indirect membership interests in CPV Shore LLC held by CPV Shore Investment LLC and Toyota Tsusho Shore LLC will not be affected by the transaction.

Purchaser and its affiliates do not own 10% or more of the voting securities in or otherwise control any electric generation facilities in the relevant market – the PJM Interconnection balancing authority area (BAA), including the PJM-East Submarket, the application noted. Therefore, following the transaction, there will be no overlap in the generating capacity owned or controlled by CPV Shore LLC and its existing affiliates and purchaser and its affiliates in the relevant market.

CPV Shore LLC is developing and will construct, own, and operate a 725 MW (nameplate) combined-cycle facility that will be interconnected to transmission facilities owned by Jersey Central Power & Light and operated by PJM, in the PJM-East Submarket. The plant, called the CPV Woodbridge Energy Center, is expected to be in service in 2015.

CPV Shore LLC said it participated in PJM’s 2012 Reliability Pricing Model (RPM) forward capacity auction and cleared 661 MW of capacity for delivery in the 2015/2016 delivery year. In PJM’s 2013 RPM auction, CPV Shore LLC cleared 661 MW of capacity for delivery in the 2016/17 delivery year. CPV Shore LLC will sell energy and ancillary services from the CPV Shore Facility at wholesale into the PJM market.

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.