The New York State Public Service Commission on March 27 approved a Feb. 10 application from Bayonne Energy Center LLC (BEC), PER Development Holdings LLC (PER) and Ragfy Holdings LLC for a Declaratory Ruling deciding that the indirect acquisition of the ownership interests in BEC need not be reviewed further under Public Service Law (PSL) §70, or in the alternative, for an approval of the transaction under PSL §70.
Through the proposed transaction, PER, the current indirect owner of BEC and its submarine transmission cable running to Consolidated Edison Co. of New York‘s Edison’s Gowanus substation, will sell all of its ownership interests to Ragfy.
BEC is indirectly owned 100% by PER, which in turn is a whole-owned subsidiary of ArcLight Energy Partners Fund III LP. BEC operates the Bayonne Energy Center Project, which is comprised of a 512 MW multi-unit, simple-cycle natural gas-fired plant located in Bayonne, New Jersey, and a 345-kV (ac) submarine electric transmission system routed from Bayonne to Con Edison’s Gowanus Substation in Brooklyn, New York.
Ragfy is an indirect wholly-owned subsidiary of Macquarie Group Ltd. (MGL). MGL is a global provider of banking, financial, advisory, investment, and funds management services. MGL is affiliated with entities that own or control electric generation and transmission facilities within the United States, none of which are located in New York Independent System Operator (NYISO) markets. MGL also indirectly owns 100% of Macquarie Energy LLC, which operates as a power marketer in various markets throughout the United States.
Under this now-approved deal, Ragfy will become the sole indirect owner of BEC and its submarine transmission cable. The PSC noted in its approval: “For the purposes of this transaction, the Petitioners have satisfied the presumption established in the Wallkill Order, under which transactions involving parent entities upstream from the entities owning wholesale electric generation facilities, located in New York will be reviewed only if there is the potential for the exercise of market power or other harm to the interests of captive New York ratepayers. No such potential is apparent here, based on the facts stated in the petition.”
On March 16, the Federal Energy Regulatory Commission also approved this same deal.