ArcLight now owns all of Bayonne Energy Center in N.J.

Bayonne Energy Center LLC on Sept. 17 told the Federal Energy Regulatory Commission that AL Bayonne Holdings LLC has acquired an additional 50% indirect ownership interest in Bayonne Energy Center from Hess Corp.

Bayonne Energy Center is now a wholly-owned indirect subsidiary of AL Bayonne, which is a wholly-owned subsidiary of ArcLight Energy Partners Fund III LP. FERC approved this transaction on July 9.

Bayonne Energy Center owns a 512-MW natural gas-fired plant located in Bayonne, New Jersey. While the facility is physically located within the footprint of PJM Interconnection, it is not interconnected to the PJM grid. It is instead interconnected to the transmission system owned by Consolidated Edison Co. of New York and operated by the New York Independent System Operator via a 6.75-mile, 345-kV submarine cable.

The entire output of the facility currently is sold under long-term tolling agreements. Direct Energy Business Marketing LLC, an unaffiliated third party, is the counterparty to two long-term tolling agreements that convey control over 320 MW from the facility to Direct Energy. The remaining capacity of the facility is sold pursuant to two long-term tolling agreements with Zone J Tolling Co. LLC, a wholly-owned indirect subsidiary of ArcLight Fund III.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.