FERC okays ownership change for Missouri power plant operator

The Federal Energy Regulatory Commission on Dec. 11 approved an ownership change related to power plant operator Dogwood Energy LLC.

On Oct. 24, Dogwood Energy requested commission authorization for a transaction in which the ownership interests in Dogwood will be transferred to the “Governing Members.” Dogwood leases and operates 55.5% of the undivided interests in a 620-MW natural gas-fired facility located near Pleasant Hill, Missouri. The Dogwood Facility is interconnected with the transmission facilities owned by KCP&L Greater Missouri Operations Co. (KCPL-GMO) and operated by the Southwest Power Pool (SPP). Dogwood is an exempt wholesale generator (EWG) and has market-based rate authority.

Dogwood is a direct, wholly owned subsidiary of Kelson LP. Kelson GP LLC is the general partner of Kelson LP and Kelson LP’s sole limited partner is Kelson Finance LLC. Kelson GP is a direct, wholly owned subsidiary of Kelson Finance, which is a direct, wholly-owned subsidiary of Kelson Energy Inc. 100% of the voting securities of Kelson Energy are owned by Kelson Holdings LLC, which is a direct, wholly owned subsidiary of Kelson Holdings III LLC, which in turn is two-thirds owned by Harbinger Capital Partners Special Situations Fund LP and one-third owned by Harbinger Capital Partners Master Fund I Ltd.

The Governing Members are various investment funds. Immediately upon closing of the proposed transaction, the voting securities of Dogwood will be solely vested in the Monarch Funds, the Trilogy Funds, the EIG Funds and Boilermaker-Blacksmith, which will hold “Governing Units” representing approximately 99% of the membership interests in Dogwood while Credit Suisse Loan Funding LLC and Freestate Management LLC will hold the remaining passive, not voting interests.

“The Kansas City, Kansas Board of Public Utilities (Kansas City BPU) submitted a motion to intervene on November 14, 2014,” FERC noted. “Kansas City BPU requested that, if the Proposed Transaction is approved, the Commission (1) require that none of the existing agreements between Dogwood and Kansas City BPU be affected in any way, and (2) examine the financial strength and creditworthiness of each of entity acquiring interests in Dogwood, to ensure that the transfer of Kelson LP’s ownership and voting interests to those entities will not have any negative financial impact on the other owners of the Dogwood Facility. On November 24, 2014, Kansas City BPU filed a motion to withdraw its comments.”

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.