The New York State Public Service Commission, in an order issued on Dec. 17, approved the transfers of ownership interests in Lockport Energy Associates LP, the owner of a 200-MW gas-fired wholesale cogeneration facility located in Lockport, New York.
On Aug. 28, Lockport Energy Associates (LEA), LEA A4 LLC, Lockport Power Cogeneration LLC and LEA LP IV LLC requested issuance of a Declaratory Ruling deciding that the transfer of indirect ownership interests in LEA from Lockport Power and LEA LP to LEA A4, a wholly-owned indirect subsidiary of Fortistar LLC, need not be reviewed further under Public Service Law since the deal has no broader effect on the New York power market. LEA is subject to lightened ratemaking regulation.
Fortistar indirectly owns 50.3% of the limited partnership interests in LEA, Osaka Gas Energy America Corp. indirectly owns 24.3%, and Harbinger Independent Power Fund I LLC indirectly owns 24.3% through its wholly-owned, indirect subsidiaries Lockport Power and LEA LP. In addition, FCI Lockport GP Inc., a wholly-owned indirect subsidiary of Fortistar, owns a 1% general partnership interest in LEA, and LEA GP Inc. (GPI) owns a 0.1% general partnership interest. GPI is indirectly owned 24% by Fortistar and 76% by Osaka Gas.
Under this approved deal, Lockport Power and LEA LP will transfer the entirety of their interests in LEA, totaling 24.3% of the limited partnership interests, to LEA A4, which is a wholly-owned indirect subsidiary of Fortistar created specifically to hold the combined interest. After the transfer, Fortistar will indirectly own 74.6% of the limited partnership interests in LEA, as well as a 1% general partnership interest and a 24% interest in GPI. Harbinger will no longer hold any interest in LEA. LEA’s general partners will not change and will continue to manage the day-to-day operations of the facility.