The Federal Energy Regulatory Commission on Oct. 10 signed off on a sale by Canada-based Maxim Power (TSX: MXG) of five gas-fired power plants in the U.S. to affiliates of Rockland Capital LLC.
On Aug. 26, several companies applied for FERC approval in connection with a transaction in which Patriot Power Holdings LLC, an affiliate of Rockland Capital, will indirectly acquire various issued and outstanding ownership interests related to these power plants.
Maxim Power is an independent power producer incorporated in the province of Alberta, Canada. Its Maxim USA affiliate owns interests in the five natural gas-fired facilities in the United States that are subject to this sales deal. They are:
- The Basin Creek Generating Plant, a 55-MW natural gas-fired power plant located in Silver Bow County, Mont., in the NorthWestern Energy balancing authority area (BAA). All of the capacity and energy of the Basin Creek Facility is sold to NorthWestern Energy under a long-term power purchase agreement.
- The Forked River Generating Plant, an 87-MW gas-fired combustion turbine plant located in Queen County, N.J., in the PJM Interconnection BAA. The output of Forked River Facility is sold to FirstEnergy Solution Corp. under a long-term power purchase agreement.
- The Pittsfield Generating Plant, a 181-MW combined cycle power plant located in Pittsfield, Mass. in the ISO New England (ISO-NE) BAA. Pittsfield receives forward capacity payments from ISO-NE, and sells energy from the Pittsfield Facility into ISO-NE’s day-ahead and real-time energy markets.
- The Pawtucket Generating Plant, a 64-MW natural gas-fired combined cycle cogeneration plant located in Pawtucket, R.I., in the ISO-NE BAA. Pawtucket receives forward capacity payments from ISO-NE, and sells energy from this facility into ISO-NE’s day-ahead and real-time energy markets.
- The CDECCA Generating Plant, a 62-MW natural gas-fired combined cycle cogeneration plant located in Hartford, Conn., in the ISO-NE BAA. CDECCA (Capitol District Energy Center Cogeneration Associates) receives forward capacity payments from ISO-NE, and sells energy into ISO-NE’s day-ahead and real-time energy markets.
FERC agreed with the contention by the applicant companies that this transaction has no power market concerns that need to be mitigated.
Of note is that affiliates of Patriot Power currently own interests in three generating facilities in the PJM BAA: the 225-MW Eagle Point Facility; the 475.6-MW B.L. England Station; and the 20-MW Hazel Spindle Facility.