Units of FirstEnergy (NYSE: FE) on Dec. 13 nudged the Federal Energy Regulatory Commission for quick approval of the transfer of licenses for ten hydroelectric facilities.
The applicant companies filed the transfer application with the commission on Sept. 4. The companies also filed with the commission on Sept. 4 an application for authorization of the transaction under Section 203 of the Federal Power Act (FPA), and applications for market-based rate authority for the purchasing LS Power Development affiliates under Section 205 of the FPA. The commission approved the 203 and 205 applications on Nov. 1.
FirstEnergy Generation and the Seneca Nation entered into a comprehensive settlement agreement about the Kinzua/Seneca pumped storage hydro project during the course of the proceeding, clearing away any potential opposition to the license transfer for that project, FirstEnergy noted.
“The Applicants desire to close the Transaction as expeditiously as possible,” said the Dec. 13 filing. “Since the Commission has previously approved the 203 Application and the 205 Applications, the only remaining affirmative action to be taken by the Commission to facilitate the closing of the Transaction is its approval of the Transfer Application. The Applicants respectfully request that the Commission expeditiously approve the Transfer Application and the Additional Requests so that they can close the Transaction as soon as possible.”
The filing added: “Expeditious approval is also warranted in order for the Transferees to achieve the full benefit of their bargain. Each day that the closing is delayed reduces the economic value of the Transaction to the Transferees. Finally, expeditious approval of the Transfer Application and the Additional Requests so that the Applicants can close the Transaction as soon as possible is in the public interest.”
The hydroelectric stations included in this proposed sale are owned by FirstEnergy Generation LLC, Allegheny Energy Supply Co. LLC and Green Valley Hydro LLC and have a total capacity of 527 MW. The sale includes:
- Seneca Pumped Storage/Kinzua (451 MW) in Warren, Pa.;
- Allegheny Lock & Dam 5 (6 MW) in Schenley, Pa.;
- Allegheny Lock & Dam 6 (7 MW) in Ford City, Pa.;
- Lake Lynn (52 MW) in Lake Lynn, Pa.;
- Millville (3 MW) in Millville, W.Va.;
- Dam 4 (2 MW) in Shepherdstown, W.Va.;
- Dam 5 (1.2 MW) in Falling Waters, W.Va.;
- Warren (750 kW) in Front Royal, Va.;
- Luray (1.6 MW) in Luray, Va.; and
- Shenandoah and Newport (860 kW and 1.4 MW, respectively) in Shenandoah, Va.