Michigan Power LP (MPLP), which owns a gas-fired power plant in Michigan, on Oct. 19 sought Federal Energy Regulatory Commission approval for the transfer from Michigan Power Funding LLC and Michigan Power Funding V LLC to Wolverine Power Holdings LLC of 100% of the membership interests in Michigan Power LP LLC, which directly owns 100% of the limited partnership interests in MPLP.
Following the consummation of this transaction, Wolverine indirectly will own all the partnership interests in MPLP.
MPLP owns and operates an approximately 128 MW (summer rating) natural gas-fired combined cycle cogen located in Ludington, Michigan. The facility is interconnected to Consumers Energy through the transmission system owned by Michigan Electric Transmission Co. and operated by the Midcontinent Independent System Operator. This is a qualifying facility (QF) under the Public Utility Regulatory Policies Act of 1978, as amended (PURPA).
MPLP sells steam, compressed air, and boiler feedwater generated by the facility to Occidental Chemical Corp. The commission has authorized MPLP to sell energy, capacity, and ancillary services at market-based rates. Substantially all of the output of the facility is committed to Consumers Energy under a power purchase agreement that is in effect until October 2030. The remaining output of the facility is sold on a merchant basis into the wholesale market.
MPLP currently is indirectly controlled by funds managed by ArcLight Capital Partners LLC.
Wolverine is a newly-formed company. It is anticipated that Rockland Power Partners II LP (RPP II), an equity fund with investors that include U.S. endowments and foundations, funds of funds, pension plans and family offices, and groups of investors, will own approximately 76% of the membership interests in Wolverine, with the remaining membership interests held collectively by a group of investors, including University of Virginia Investment Management Co., Virginia Tech Foundation Inc., Gothic Corp., Gothic HSP Corp., Gothic ERP LLC and Gothic JBD LLC. Day-to-day decision-making responsibility for Wolverine is vested in its manager, Rockland Capital LLC.
A contact for the buyer is: James Maiz Rockland Capital LLC, 24 Waterway Avenue, Suite 800, The Woodlands, TX 77380, Tel: (281) 863-9006, Fax: (281) 863-9059, firstname.lastname@example.org.
ArcLight Capital Partners on Oct. 21 officially announced this deal. It said the sale is expected to close by year end following receipt of customary approvals.
ArcLight is one of the leading private equity firms focused on North American and Western European energy assets. Since its establishment in 2001, ArcLight has invested over $13.1 billion across multiple energy cycles in more than 90 investments. Headquartered in Boston, Mass., with an additional office in Luxembourg, the firm’s investment team brings extensive energy expertise, industry relationships, and specialized value creation capabilities to its portfolio.