The Federal Energy Regulatory Commission on July 15 approved a May 30 application from Constellation Power Source Generation LLC, Safe Harbor Water Power Corp. and BIF II Safe Harbor Holdings LLC for a hydropower facility sale.
BIF II Safe Harbor, or another entity that in all cases will be controlled by Brookfield Asset Management Inc., will in this deal acquire all of Constellation’s ownership interests in Safe Harbor. Safe Harbor, an exempt wholesale generator with market-based rate authority, owns and operates the Safe Harbor Project, a 417.5-MW hydroelectric facility located in Conestoga, Pa., within the 5004/5005 and AP South sub-markets of the PJM Interconnection balancing authority area. Output from the Safe Harbor Project is sold under a power purchase agreement.
Constellation holds interests in Safe Harbor that represent 50% of the voting power and 66.67% of the equity in Safe Harbor. BIF II Safe Harbor holds interests in Safe Harbor that represent 50% of the voting power and 33.33% of the equity in Safe Harbor.
BIF II Safe Harbor is partially indirectly owned and is controlled by ultimate parent Brookfield, a global alternative asset manager focused on property, renewable power, infrastructure assets, and private equity.
Under the proposed transaction, BIF Safe Harbor will acquire from Constellation all of its ownership in Safe Harbor. BIF II Safe Harbor will then wholly own Safe Harbor, and, according to the applicants, have control over the Safe Harbor Project.
Brookfield Renewable Energy Partners LP (TSX: BEP.UN) (NYSE: BEP) announced May 15 that, with its institutional partners, it has entered into an agreement with a subsidiary of Exelon Corp. (NYSE: EXC) to acquire the remaining 67% interest it did not already own in the Safe Harbor hydroelectric facility. Constellation is a unit of Exelon.