Sale completed of Lakeside, Hazleton plants in New York, Pennsylvania

The Federal Energy Regulatory Commission got a Feb. 20 notice from the parties that on Feb. 13, the sale of certain power plant interests went through.

FERC on Jan. 7 had approved the sale of three power plant interests in New York State and Pennsylvania by one equity investor to another. Lakeside Energy LLCLakeside Generation LLCLakeside New York LLCLakeside Hazelton LLCLakeside Beaver Falls LLCLakeside Syracuse LLC and Hazleton Generation LLC (collectively the Lakeside Entities) plus NEP Holdco 1 LLC, had filed an application requesting commission authorization for the disposition of jurisdictional facilities. Specifically, NEP Holdco is acquiring from Lakeside Energy all of the outstanding membership interests in Lakeside Generation.

Lakeside Energy is a private equity firm that is in the business of 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 private equity firm American Securities LLC. The remaining Lakeside Entities are Delaware limited liability companies whose corporate parent is Lakeside Energy.

Lakeside Beaver Falls, Lakeside Syracuse and Hazleton Generation, referred to as the Lakeside Generators, are exempt wholesale generators with market-based rate authority.

  • Lakeside Beaver Falls owns and operates an approximately 108 MW combined-cycle facility located in Beaver Falls, New York; and
  • Lakeside Syracuse owns and operates an approximately 103 MW combined-cycle facility located in Solvay, New York.

Both the 108 MW and 103 MW facilities are situated within the New York Independent System Operator balancing authority area (NYISO BAA).

Hazleton Generation owns and operates an approximately 158 MW natural gas- and oil-fired facility located in Luzerne County, Pennsylvania, which is within the PJM Interconnection BAA.

Said the Feb. 20 notice filed with FERC: “In accordance with Ordering Paragraph ‘8’ of the Order, Applicants hereby notify the Commission that the Transaction was consummated on February 13, 2015.”

NEP Holdco is a newly-formed Delaware limited liability company. Upon consummation of the proposed transaction, the Lakeside Generators are to be wholly owned, indirect subsidiaries of NEP Holdco. The NEP Holdco owners are funds managed by Starwood Energy Group Global LLC, a private equity fund.

Starwood on Feb. 20 filed separately with FERC a notice of its change in market power status related to the buys of these three power plants and another, unrelated deal. On Jan. 21 an affiliate of Starwood acquired all of the outstanding partnership interests in CER-Quail Run Energy Partners LP, which owns and operates an approximately 550-MW natural gas-fired combined cycle plant, known as the Quail Run Energy Center, located about four miles west of the city of Odessa in Ector County, Texas.

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.