The Federal Energy Regulatory Commission on Jan. 12 approved the transfer of a biomass-fired power plant in New York from one subsidiary of a parent company to another.
On Dec. 1, 2014, Niagara Generation LLC and NiGen LLC filed an application seeking authorization in connection with an intra-corporate transfer of the 51-MW Niagara Generating Plant, which is located in Niagara Falls, New York, from Niagara Generation to NiGen. The purpose of the intra-corporate transfer is to place ownership of the facility in a new single-purpose entity to allow parent Sterling Energy Group and NiGen to undertake a refinancing.
Niagara Generation was originally formed by USRG Finance Co. LLC to own and operate the facility and to convert the coal-fired plant to co-fire qualifying biomass. It was originally granted market-based rate authority under the name of WPS Niagara Generation LLC in 2002. The commission authorized USRG to sell Niagara Generation to Sterling in 2013.
Applicants stated that the facility has a Renewable Portfolio Standard (RPS) Agreement with the New York State Energy Research and Development Authority (NYSERDA). Under that agreement, NYSERDA purchases the renewable energy attributes associated with the portion of the facility’s output fueled by qualifying biomass, but applicants said that NYSERDA does not purchase any of the energy, capacity, etc. produced by the facility. All of the energy, capacity, or other generation related services are sold into markets operated by the New York Independent System Operator (NYISO).
On Jan. 9, FERC also accepted a Dec. 3, 2014, application for market-based rate authority from NiGen LLC. NiGen had on Dec. 5 also filed with FERC a notice of self-certification as an exempt wholesale generator.