FERC okays sale of one-third of Luna power plant in New Mexico

The Federal Energy Regulatory Commission on Dec. 30 approved the sale of a one-third interest in a gas-fired power plant in New Mexico to a South Korea-based investor.

On Nov. 6, Freeport-McMoRan Copper & Gold Energy Services LLC (FMCG Energy Services) and Samchully Power & Utilities 1 LLC sought commission authorization for the disposition of jurisdictional facilities resulting from the transfer of FMCG Energy Services’ one-third undivided interest as a tenant in common in the Luna Energy Facility, 570-MW (nominal) natural gas-fired combined cycle facility located in Deming, New Mexico, to Samchully Power & Utilities 1.

FMCG Energy Services is an exempt wholesale generator (EWG) and has been granted market-based rate authority and is a Category 1 Seller. FMCG Energy Services operates strictly at wholesale and its power sales are exclusively at wholesale. Freeport-McMoRan Inc. is a public company principally engaged in mining, extraction, and the beneficiation of metal ores. Freeport is the upstream owner of FMCG Energy Services.

Samchully Power & Utilities 1 was created for this deal. Samchully Power & Utilities 1 intends to operate as an EWG with market-based rate authorization. In the event that FMCG Energy Services does not exercise its right to dispatch output, the applicants told FERC that Samchully Power & Utilities 1 will sell the output from its share of the Luna to FMCG Energy Services for resale or into the wholesale market.

Samchully Power & Utilities 1 is a wholly-owned subsidiary of the trustee of Samchully Power & Utilities Private Placement Special Asset Fund 1, which is an investment trust in South Korea managed and controlled by Samchully Asset Management Co.

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.