FERC okays Exelon sale of stakes in two Pennsylvania coal plants

The Federal Energy Regulatory Commission on Dec. 23 approved the sale by affiliates of Exelon Corp. (NYSE: EXC) to ArcLight Capital Partners LLC of major stakes in the coal-fired Keystone and Conemaugh power plants in Pennsylvania.

On Nov. 6, Exelon’s Constellation Power Source Generation LLC and Exelon Generation Co. LLC, plus ArcLight’s Chief Keystone Power LLC and Chief Conemaugh Power LLC, filed an application covering the transfer of undivided ownership interests in the Conemaugh Electric Generating Station and Keystone Electric Generating Station from Constellation Power and Exelon Generation to Chief Keystone and Chief Conemaugh.

Constellation Power and Exelon Generation are wholly-owned indirect subsidiaries of Exelon Corp. Constellation Power holds a 20.99% undivided ownership interest as a tenant-in-common in the Keystone Station and a 10.56% undivided ownership interest as a tenant-in-common in the Conemaugh Station. Exelon Generation holds a 20.99% undivided ownership interest as a tenant-in common in the Keystone Station and a 20.72% undivided ownership interest as a tenant-in-common in the Conemaugh Station.

Constellation Power and Exelon Generation have rights to approximately 535 MW of energy and capacity from the Conemaugh Station and 718 MW of energy and capacity from the Keystone Station. Constellation Power and Exelon Generation sell the energy and capacity from their shares of the Keystone Station and Conemaugh Station at market-based rates.

The remaining undivided interest in the Keystone Station are held by PPL Montour, Duquesne Keystone LLC, Keystone Power LLC (NRG), PSEG Fossil LLC and GenOn REMA (NRG), LLC. The remaining undivided interests in the Conemaugh Station are held by PPL Montour, Conemaugh Power LLC (NRG), Duquesne Conemaugh LLC, PSEG Fossil LLC, GeOn REMA LLC (NRG), and UGI Development Co. Notable is that the PPL Corp. (NYSE: PPL) stakes in the plants held by PPL Montour are to be spun off in the new Talen Energy.

The Keystone Station is a 1,711-MW coal-fired facility located in Shelocta, Pennsylvania. The Conemaugh Station is a 1,711-MW coal-fired facility located in New Florence, Pennsylvania. They are interconnected to the transmission system owned by Pennsylvania Electric and operated by PJM Interconnection.

Chief Conemaugh and Chief Keystone are wholly-owned indirect subsidiaries of ArcLight Fund V, which is a private equity fund managed by ArcLight Capital Partners.

The Federal Energy Regulatory Commission on Dec. 19 accepted market-based rate tariffs for Chief Keystone and Chief Conemaugh in relation to operation of these ownership stakes after this purchase deal is closed.

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.