The Federal Energy Regulatory Commission on Feb. 12 approved a change in control related to several hydroelectric facilities in states like West Virginia and Pennsylvania that are being bought by Cube Hydro Partners LLC.
On Dec. 15, 2014, All Dams Generation LLC, Lake Lynn Generation LLC and PE Hydro Generation LLC applied for approval of a transfer of upstream ownership interests in these companies. Cube Hydro Partners will directly or indirectly acquire 100% of the applicants’ ownership interest from Harbor Hydro LLC.
Lake Lynn owns and operates a 52-MW hydroelectric facility (Lake Lynn Station) located between Fayette County, Pennsylvania, and Monongahela County, West Virginia. The Lake Lynn Station is interconnected to the transmission system of West Penn Power, which is under the operational control of PJM Interconnection.
All Dams owns and operates two run-of-river hydroelectric facilities with a combined capacity of 14 MW (Allegheny Lock & Dam Units 5 and 6) located in Freeport, Pennsylvania. The Allegheny Lock & Dam Units 5 and 6 are located in the PJM market.
PE Hydro owns and operates seven run-of-river hydroelectric stations located in Virginia and West Virginia. All of the hydroelectric stations are located in the PJM market. These facilities are:
- The Millville Project is an approximately 2.4-MW facility located in Jefferson County, West Virginia. The Millville Project interconnect to the Allegheny Power transmission system, which is under the operational control of PJM.
- Dam No. 4 Hydro Station (Dam No. 4) and Dam No. 5 Hydro Station (Dam No. 5) have a combined capacity of approximately 2.9 MW located in Berkeley and Jefferson counties, West Virginia. Dam No. 4 and Dam No. 5 are each interconnected to Allegheny Power’s transmission system, which is under PJM’s operational control.
- The Luray and Newport Projects have a combined capacity of approximately 2.4 MW located in Page County, Virginia. The Luray and Newport Projects interconnect with the distribution system of the Shenandoah Valley Electric Cooperative.
- The Shenandoah Project is a 0.9 MW hydroelectric facility located in Page County, Virginia.
- The Warren Project is a 0.8 MW hydroelectric facility located in Warren County, Virginia. The Warren Project interconnects to the distribution system of Rappahannock Electric Cooperative.
Applicants state that all of their ownership interests are owned indirectly through certain intermediate holding companies by Harbor Hydro. Harbor Hydro is an indirect wholly-owned subsidiary of LS Power Development LLC (LSP Development). LSP Development is the general partner of LS Power Associates LP. LSP Development develops, owns, and operates independent power projects in the United States.
Cube Hydro is in the business of developing and acquiring hydroelectric projects globally. It is a joint venture between: three investment funds – ISQ Global Infrastructure Fund LP, ISQ Global Infrastructure Fund (USTE) LP, and ISQ Global Infrastructure Fund (UST) LP – which indirectly own 99% of the ownership interests in Cube Hydro; and Enduring Hydro LLC, which indirectly owns 1% of the ownership interests in Cube Hydro.
Cube Hydro indirectly owns 49% of the ownership interests in Mahoning Creek Hydroelectric Co. LLC, which owns and operates an approximately 6.5 MW hydroelectric qualifying facility (Mahoning Creek Hydroelectric Project) located in Armstrong County, Pennsylvania. The Mahoning Creek Hydroelectric Project interconnects with the transmission system of West Penn Power, which is under the operational control of PJM.
Pursuant to a Purchase and Sale Agreement between Harbor Hydro and Cube Hydro, Harbor Hydro will sell 100% of the equity interests of each applicant to Cube Hydro or one or more wholly-owned subsidiaries of Cube Hydro that will be formed to own the voting securities of the applicants. After the proposed transaction is consummated, Cube Hydro will directly or indirectly own 100% of the equity interests of each applicant.