Lakeside Energy LLC, Lakeside Generation LLC, Lakeside New York LLC, Lakeside Beaver Falls LLC and Lakeside Syracuse LLC as one group, and also NEP Holdco 1 LLC (NEP Holdco), filed a Nov. 26 application with the New York State Public Service Commission for approval of a power plant sale deal.
They want an expedited order approving the transfer of all the membership interests of Lakeside Generation from Lakeside Energy to NEP Holdco together with other related approvals. Petitioners requested expedited action, by Jan. 8, 2015, in time to permit the transaction to be consummated in January 2015.
- Lakeside Beaver Falls owns and operates an approximately 108 MW competitive generation facility in Beaver Falls, New York. Lakeside Beaver Falls is an exempt wholesale generator (EWG) and is authorized to sell power at market-based rates. Lakeside Beaver Falls also provides steam to two customers, Interface Solutions Inc. and Omniafiltra LLC.
- Lakeside Syracuse owns and operates an approximately 103 MW competitive generation facility in Solvay, New York. Lakeside Syracuse is an EWG and is authorized to sell power at market-based rates.
Lakeside Beaver Falls and Lakeside Syracuse are wholly owned by Lakeside New York, which in turn is wholly owned by Lakeside Generation. Lakeside Generation is wholly owned by Lakeside Energy. NEP Holdco and its affiliates currently own no generation facilities in New York.
The petitioners are seeking expedited authorization to transfer all of the ownership interests of Lakeside Generation, the upstream owner of the competitive electric generation subsidiaries, from Lakeside Energy to NEP Holdco. The petitioners further request that the lightened regulatory treatment now applicable to the Lakeside Generators continue to apply under the ownership of NEP Holdco and that the commission determine that the transfer of the ownership interests of Lakeside Generation from Lakeside Energy to NEP Holdco will not have a significant impact on the environment.
Lakeside Energy is a private equity firm committed to providing capital to create profitable growth by acquiring, financing, owning, and operating energy companies and assets in North America. Lakeside Energy is owned by American Securities Partners IV LP and other affiliated funds managed by American Securities LLC, a leading U.S. private equity firm. Lakeside Generation is a wholly owned subsidiary of Lakeside Energy. Lakeside Generation owns 100% of Lakeside New York.
Other than the Lakeside Entities, which own the generation facilities identified and described in this application, and Hazleton Generation LLC, which owns an approximately 158 MW natural gas- and oil-fired electric facility located in Hazle Township, Luzerne County, Pennsylvania, Lakeside Energy and Lakeside Generation are not affiliated with any entity that owns or controls generation or transmission facilities.
NEP Holdco is a special-purpose limited liability company created for the purpose of facilitating the transaction. It will own these power plant interests under two structures that are indirect subsidiaries of funds managed and controlled exclusively by Starwood Energy Group Global LLC (SEG), a leading private equity fund committed to providing capital to create profitable growth by acquiring, financing, owning and operating energy companies and assets in North America.
The Nov. 26 sale agreement provides that Lakeside Energy will sell to NEP Holdco 100% of the membership interests in Lakeside Generation. Upon closing of the transaction, Lakeside Generation will be a wholly owned, direct subsidiary of NEP Holdco, and Lakeside New York, Lakeside Beaver Falls and Lakeside Syracuse will be wholly owned, indirect subsidiaries of NEP Holdco.