FERC okays sale of one third interest in New Mexico power plant

The Federal Energy Regulatory Commission on March 9 approved the sale of an ownership stake in a gas-fired power plant in New Mexico from one Korean company to another.

On Feb. 5, Samchully Power & Utilities 1 LLC sought authorization for the disposition of jurisdictional facilities resulting from the transfer of an indirect ownership interest in Samchully from Hana Daetoo Securities Co. Ltd. out of South Korea to National Agricultural Cooperative Federation.

Samchully owns a one-third undivided interest in the Luna Energy Facility, a nominally rated 570-MW natural gas-fired combined cycle facility located in Deming, New Mexico. Samchully has rights to approximately 190 MW from the facility that is interconnected to the Southwest New Mexico Transmission Project and operated by El Paso Electric and jointly owned by El Paso, Public Service Co. of New Mexico and Texas-New Mexico Power. Samchully sells the output from its share of the facility to Freeport McMoRan Copper & Gold Energy Services LLC under a power purchase agreement.

The buyer, National Agricultural, is headquartered in Seoul, South Korea, and is owned by approximately 2.4 million farmers through a member cooperative. It is engaged in banking, insurance, agricultural marketing and supply, livestock marketing and supply, and extension services.

Incidentally, the Federal Energy Regulatory Commission in December 2014 approved the sale of a one-third interest in this plant. Freeport-McMoRan Copper & Gold Energy Services and Samchully Power & Utilities 1 had sought commission authorization for the transfer of FMCG Energy Services’ one-third undivided interest in the Luna Energy Facility to Samchully Power & Utilities 1.

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.