The Federal Energy Regulatory Commission on Dec. 11 approved a change in control for Mesquite Power LLC, from Sempra Generation LLC to an affiliate of ArcLight Capital Partners LLC.
On Nov. 5, Mesquite Power requested commission authorization for a transaction in which Mesquite Power will transfer 100% of its direct membership interests to Mesquite Power Holdings LLC, a wholly-owned indirect subsidiary of ArcLight Energy Partners Fund V LP.
Mesquite Power owns the 625-MW Block 2 of the Mesquite Generating Station and certain interconnection facilities located in Maricopa County, Arizona. The Mesquite Generating Station is interconnected to the Hassayampa Switchyard, which was built as a satellite extension of the Palo Verde Switchyard, together forming a commission-approved “Common Bus.”
The interconnection facilities are currently utilized to interconnect the Mesquite Generating Station and the generation facility of Mesquite Solar 1 LLC, a current affiliate of Mesquite Power, to the Hassayampa Switchyard. These interconnection facilities are jointly owned by Mesquite Power, Mesquite Solar, and the Salt River Project (SRP). Mesquite Power and SRP each own a 50% membership interest in Mesquite Power Operations LLC, which operates the Mesquite Generating Station and the interconnection facilities. The buyer’s acquisition of Mesquite Power will include Mesquite Power’s 50% membership interest in Mesquite Power Operations.
Mesquite Power is a wholly-owned, direct subsidiary of Sempra Generation LLC, which in turn is a wholly-owned indirect subsidiary of Sempra Energy, the public utility holding company based in San Diego. Sempra Generation is the seller under a long-term power purchase agreement for the sale of energy at wholesale negotiated rates of up to 271 MW of firm, day-ahead power, delivered to the Common Bus beginning on Jan. 1, 2015, to a group of unaffiliated wholesale purchasers. These purchasers are 21 members of the Southwest Public Power Resources Group (SPPR Group), an association of 40 not-for-profit utilities in Arizona and southern Nevada.
The buyer is a wholly-owned indirect subsidiary of ArcLightFund V, which is a private equity fund managed by ArcLight Capital Partners LLC.