FERC okays a Rockland Power buy of two Illinois plants from LS Power

The Federal Energy Regulatory Commission, finding no market concentration issues, on April 30 approved the sale of two gas-fired power plants in Illinois to Rockland Power Partners II LP.

On March 27, Tilton Energy LLC and Rocky Road Power LLC filed an application requesting commission authorization for Zephyr Generation LLC to acquire from Valley Road LLC 100% of the equity interests in Valley Road Holdings LLC, the indirect owner of the applicant companies.

Applicants are exempt wholesale generators with market-based rate authority. Tilton owns and operates an approximately 176-MW natural gas-fired facility located in Tilton, Illinois, within the Midcontinent Independent System Operator (MISO) balancing authority area (BAA). Rocky Road owns and operates an approximately 327-MW natural gas-fired facility located in East Dundee, Illinois, within the PJM Interconnection BAA.

Applicants are direct wholly-owned subsidiaries of Valley Road Funding LLC, which in turn is directly wholly-owned by Valley Road Holdings. Valley Road Holdings is a direct wholly-owned subsidiary of Valley Road which, in turn, is directly wholly-owned by corporate parent LS Power Development LLC. LS Power Development, a general partner of LS Power Associates LP, develops, owns, and operates independent power projects in the United States, including merchant transmission projects.

Zephyr was created to hold ownership interest in the applicants. Zephyr is directly wholly owned by Rockland Power Partners II LP, a private equity fund. Rockland Power Partners II and associate Rockland Power Partners hold interests in entities that own or control electric generation capacity within the MISO and PJM BAAs.

  • Within the MISO BAA, Rockland Power Partners indirectly wholly owns: Sabine Cogen LP, owner of an 87.2-MW cogeneration facility located in Orange, Texas; and Lakeswind Power Partners LLC, owner of a 48-MW wind facility located in Becker and Otter Tail counties, Minnesota.
  • Also within the MISO BAA, Rockland Power Partners II indirectly wholly owns: Gibson City Energy Center LLC, owner of a 228-MW natural gas-fired facility located in Gibson City, Illinois; and Grand Tower Energy Center LLC, owner of a 511 MW natural gas-fired facility located in Grand Tower, Illinois.
  • Within the PJM BAA, Rockland Power Partners indirectly wholly owns: Eagle Point Power Generation LLC, owner of a 195-MW natural gas-fired facility located in Westville, New Jersey; and Hazle Spindle LLC, owner of a 20-MW energy storage facility located in Hazle Township, Pennsylvania.
  • Also within the PJM BAA, Rockland Power Partners II indirectly wholly owns Elgin Energy Center LLC, owner of a 460-MW natural gas-fired facility located in Elgin, Illinois.
  • Within the PJM BAA, Zephyr and its affiliates hold a nominal interest in RC Cape May Holdings LLC, owner of a 311-MW facility known as the B.L. England Generating Station located in Cape May County, New Jersey.

Under the approved transaction, pursuant to a purchase agreement between Valley Road and Zephyr, Zephyr will acquire from Valley Road directly 100% of the equity interests in Valley Holdings and indirectly 100% of the equity interests of Valley Road Funding and and the applicants. Upon consummation of the transaction, Zephyr will indirectly own 100% of both Tilton and Rocky Road.

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.