FERC accepts market app from new part owners of two coal plants

The Federal Energy Regulatory Commission on Dec. 19 accepted market-based rate tariffs for two ArcLight Capital Partners LLC affiliates that are buying major stakes in the Keystone and Conemaugh coal plants in Pennsylvania.

On Nov. 6, Chief Conemaugh Power LLC and Chief Keystone Power LLC applied for market-based rate authority with accompanying tariffs. The proposed market-based rate tariffs provide for the sale of energy, capacity, and ancillary services at market-based rates.

Under a deal with Exelon (NYSE: EXC), Chief Conemaugh will acquire a 31.28% interest in the 1,711-MW Conemaugh Station located in New Florence, Pennsylvania, and Chief Keystone will acquire a 41.98% interest in the 1,711-MW Keystone Station located in Shelocta, Pennsylvania. Both plants are located within the PJM Interconnection market.

As a result of this transaction, Chief Conemaugh will have rights to about 535 MW of energy and capacity from the Conemaugh Station, and Chief Keystone will have rights to approximately 718 MW of energy and capacity from the Keystone Station. These new companies are both wholly owned, indirect subsidiaries of ArcLight Energy Partners Fund V LP, which is a private equity fund managed by ArcLight Capital Partners LLC.

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.