Talen Energy (NYSE: TLN) won an Oct. 22 approval from the Federal Energy Regulatory Commission to buy three gas-fired power plants with well over 2,000 MW of combined capacity.
On Aug. 10, MACH Gen LLC, Millennium Power Partners LP, New Athens Generating Co. LLC, New Harquahala Generating Co. LLC and Talen Energy Supply LLC filed an application covering the sale of 100% of the membership interests in MACH Gen to Talen Energy Supply.
MACH Gen owns 100% of the membership interests in New MACH Gen LLC, which in turn owns 100% of the membership interests in New Athens and New Harquahala. New MACH Gen also owns the 0.5% limited partner interest in Millennium, and 100% interest in MACH Gen GP LLC, which owns 99.5% general partnership interest in Millennium. MACH Gen is currently owned by a number of financial institutions, investment companies, and funds.
- Millennium owns and operates a 334.9 MW (summer rating) natural gas-fired, combined cycle facility located within the ISO-New England market. Millennium is an exempt wholesale generator (EWG) and is authorized by the commission to sell power at market-based rates.
- New Athens owns and operates a 1,137.9 MW (summer rating) natural gas-fired, combined cycle facility located in Athens, New York, in the New York ISO market. New Athens is a EWG and is authorized by the commission to charge market-based rates.
- New Harquahala owns and operates the New Harquahala power facility, a 1,020 MW (summer rating) natural gas-fired combined cycle plant located in Maricopa, County, near the town of Tonopah, Arizona. The New Harquahala facility is interconnected through the Hassayampa Switchyard, which is owned by a consortium of utilities, operated by the Salt River Project and located in the balancing authority area of Arizona Public Service within the Western Electricity Coordinating Council. New Harquahala is an EWG, and is authorized by the commission to charge market-based rates.
Under this now-approved deal, MACH Gen and the other sellers will sell and Talen Energy Supply will purchase 100% of the membership interests in MACH Gen.
Talen Energy announced July 20 that it had reached agreement to buy MACH Gen for $1.175 billion. That price is inclusive of any assumed debt and subject to customary purchase price adjustments.