The Federal Energy Regulatory Commission on Nov. 25 approved the sale of an ownership interest in the gas-fired Astoria II power plant in New York.
On Oct. 16, Astoria Energy II LLC applied for the disposition of jurisdictional facilities connected with the transfer of indirect equity interests held in applicant from SNC-Lavalin Generation (SNC-Lavalin) to Gulf Pacific Power LLC or its wholly-owned subsidiary (Gulf Pacific).
Astoria Energy II is the 100% owner of the Astoria II project, an approximately 550-MW generating facility located exclusively within and interconnected into the New York City submarket (Zone J) of the New York Independent System Operator (NYISO) market. The Astoria II project entered into commercial service during 2011. The project’s output is fully committed through June 30, 2031, to the New York Power Authority (NYPA).
Applicant stated that it is a wholly-owned subsidiary of Astoria Project Partners II LLC (Astoria Partners II). SNC-Lavalin is a multiline engineering and construction firm which neither owns nor controls any uncommitted electric power production capacity within NYISO Zone J, and which does not own or control any retail electric facilities or distribution services with or into NYISO, or have any NYISO captive customers or any ability to erect any barriers to entry into any relevant market.
Gulf Pacific was organized as an investment fund and managed by Harbert Gulf MM LLC (Harbert Gulf MM), which is a subsidiary of Harbert Management Corp.
Harbert also has an interest in Astoria Enegy LLC, which owns and operates an approximately 540-MW electric generator in Astoria, Queens, New York City, in NYISO Zone J. Astoria Energy sells 500 MW of its capacity and on-peak energy at market-based rates to Consolidated Edison Co. of New York under a long-term power purchase contract, and may at times sell small quantities of surplus electricity into the NYISO market.
Applicant states that in accordance with the purchase and sale agreement, dated as of Aug. 28, 2013, SNC-Lavalin will transfer 66% of its indirect Class A voting equity interests in applicant (comprising 13.2% of the total indirect Class A voting equity interests in applicant) to Gulf Pacific. Following the transaction, SNC-Lavalin will retain 6.8% of the total indirect Class A voting equity interests in applicant.
As part of the transaction, SNC-Lavalin will irrevocably designate Gulf Pacific as having the authority to appoint a member of the board of managers of Astoria Partners II. Applicant states that in no other respect will the transaction change the indirect ownership of itself. Astoria Energy II added that only certain of the interests held by SNC-Lavalin are subject to the transaction.