The Federal Energy Regulatory Commission on Dec. 23 approved the sale of stakes in three gas-fired power plants by Veresen Inc. to AltaGas Ltd.
On Nov. 21, Veresen U.S. Power Inc., on behalf of its public utility subsidiaries, and AltaGas Power Holdings (U.S.) Inc. requested commission authorization for the disposition of jurisdictional facilities in connection with AltaGas directly or indirectly, as applicable, acquiring 100% of the interests of Brush Cogeneration Partners, Pomona Power Generation LLC and Ripon Cogeneration LLC from Veresen.
Brush owns and operates a combined-cycle, natural gas-fired generating facility with a capacity of about 70 MW, and associated interconnection facilities, located in Brush, Colorado. The Brush Facility is interconnected with the Public Service Co. of Colorado transmission system. Its output is fully committed under a long-term power purchase agreement with Tri-State Generation and Transmission Association that expires Dec. 31, 2019. Fort Chicago Power Colorado LLC and Brush Holdings LP each hold 50% of the partnership interests of Brush. Ripon owns a 1% partnership interest in Brush Holdings, and Fort Chicago owns a 99% partnership interest in Brush Holdings. Ripon owns 100% of the equity interests in Fort Chicago.
Ripon is a wholly-owned, direct subsidiary of Veresen. Ripon owns and operates a qualifying natural gas-fired cogeneration facility with a capacity of approximately 49.5 MW, and associated interconnection facilities, located in Ripon, California. The Ripon Facility is interconnected with the Pacific Gas & Electric (PG&E) transmission system, in the market operated by the California Independent System Operator (CAISO). The entire output of the Ripon Facility is currently fully committed under a power purchase agreement with PG&E that was entered into under the Public Utility Regulatory Policies Act of 1978 (PURPA).
Beginning in Q1 2015, the entire output of the Ripon Facility will begin being sold to PG&E under a long-term tolling agreement that will expire on May 31, 2018. The tolling agreement was a result of a PG&E Combined Heat and Power Request for Offers that came about from a CHP Settlement Agreement dated September 2010 that was approved by the California Public Utilities Commission.
Pomona is a wholly-owned, direct subsidiary of Veresen. Pomona owns and operates a qualifying natural gas-fired cogen facility with a capacity of approximately 44.5 MW, and associated interconnection facilities, located in Pomona, California (San Gabriel Facility). The San Gabriel Facility is interconnected with the Southern California Edison (SCE) transmission system in the CAISO market. The entire output of the San Gabriel Facility is committed under a PURPA power purchase agreement with SCE that expires in January 2016.
Veresen is the direct or indirect owner of Ripon, Brush and Pomona. Veresen is an indirect and wholly owned subsidiary of Veresen Inc., a publicly-traded corporation based in Calgary, Alberta, that owns and operates energy infrastructure assets across North America.
AltaGas is an indirect wholly-owned subsidiary of AltaGas Ltd., a Canadian corporation. AltaGas Ltd. is an energy infrastructure business that directly, and indirectly through its subsidiaries, focuses on natural gas and power assets, and regulated utilities, primarily located throughout Canada, but with some assets in the United States. Through its subsidiaries, AltaGas Ltd. develops and owns power generation projects and gas utility companies in the United States.
Under this agreement, Veresen will sell, and AltaGas will purchase, directly or indirectly, 100% of the equity interests in Ripon, Brush, and Pomona. As a result, Ripon, Brush, and Pomona will each become a wholly-owned subsidiary of AltaGas.