Calpine Granite Holdings LLC and Granite Ridge Energy LLC applied Oct. 27 at the Federal Energy Regulatory Commission for approvals deemed to be required in connection with a transaction whereby Calpine Granite will acquire all of the membership interests of Granite Ridge, which is owns a 719-MW plant in New Hampshire.
They asked that the commission issue an order approving the transaction on or before Jan. 15, 2016, and establish a shortened comment period of 45 days in order to allow for approval by that date. “Issuance of an order by this date is appropriate, because the Transaction presents no competitive issues,” they told the commission.
Calpine Granite was formed for the purpose of acquiring the membership interests of Granite Ridge. Calpine Granite is an indirect wholly owned subsidiary of Calpine Corp. (NYSE: CPN). Through various subsidiaries, Calpine currently owns, leases, and operates natural gas-fired and renewable geothermal power plants in the United States with an aggregate generating capacity of nearly 27,000 MW.
Through parent Calpine, Calpine Granite is affiliated with the following entities that own or control generation facilities in the ISO New England (ISO-NE) market, where the generation being acquired is located:
- Calpine Fore River Energy Center LLC, which owns and operates an approximately 726 MW (summer rating) natural gas-fired facility in North Weymouth, Massachusetts; and
- Westbrook Energy Center LLC, which owns and operates an approximately 522 MW (summer rating) natural gas-fired facility near Westbrook, Maine.
Other Calpine subsidiaries own or control generation facilities in the New York Independent System Operator market, which is first-tier to the ISO-NE market.
Granite Ridge owns and operates the Granite Ridge Generating Facility, an approximately 719 MW (summer rating) natural gas-fired, combined cycle station located in Londonderry, New Hampshire. All of Granite Ridge’s membership interests are owned by Granite Ridge Holdings LLC, all of whose membership interests are currently owned by 15 investors. Each of the members is a financial company not primarily engaged in energy-related business activities.
Under this deal, Calpine Granite will acquire all of the membership interests of Granite Ridge from Granite Ridge Holdings, in exchange for cash and other consideration. Upon consummation of the transaction, all of the membership interests of Granite Ridge will be directly owned by Calpine Granite and indirectly owned by Calpine.
Calpine on Oct. 13 announced that it has agreed to acquire the Granite Ridge Energy Center from Granite Ridge Holdings for $500m. The deal is subject to working capital adjustments, Calpine said. Granite Ridge is located in the ISO-New England region, where tightening market conditions have resulted in capacity revenues that will improve substantially over the next three years, Calpine said. The power plant, which commenced commercial operation in 2003, features two Siemens 501G combustion turbines, two heat recovery steam generators and one steam turbine.