The Federal Energy Regulatory Commission on Dec. 3 signed off on a purchase by Lower Mount Bethel Energy LLC of a 600-MW, gas-fired plant in Pennsylvania that the company up to now had been leasing.
On Oct. 18, Lower Mount Bethel Energy requested commission approval for a transaction in which it will acquire the Lower Mount Bethel Energy generating plant. The company is an exempt wholesale generator (EWG) with market-based rate authority.
Lower Mount Bethel Energy is an indirect wholly-owned subsidiary of PPL Energy Supply LLC and a direct subsidiary of PPL Generation LLC. The plant it wants to buy is a 600-MW combined cycle, gas-fired plant located in Lower Mount Bethel Township, Pa., in the PJM Interconnection balancing authority area. The company sells the output of the facility to its affiliate, PPL EnergyPlus LLC, under a long-term agreement.
PPL Generation is a wholly-owned subsidiary of PPL Energy Supply, which is an indirect wholly-owned subsidiary of PPL Corp. (NYSE: PPL).
Lower Mount Bethel Energy told FERC that it has several affiliates that own electric generation in the PJM balancing authority area. The affiliates own a combined total of 8,491 MW. PPL Renewable Energy LLC also owns a number of projects in the PJM and ISO New England balancing authority areas.
The applicant stated that LMB Funding LP was formed for the purpose of constructing and holding an interest in the power plant. LMB Funding is a passive owner-lessor that does not influence the operation of the power plant or receive any revenues arising out of sales of electricity from the facility. Bank Hapoalim, Sienna Investment Partners LLC, and an individual are each limited partners of LMB Funding.
In the proposed transaction, Lower Mount Bethel Energy plans to exercise its option to purchase the power plant from LMB Funding.
