The Federal Energy Regulatory Commission on Nov. 19 approved an Oct. 5 application from GWF Energy LLC and AltaGas Power Holdings (U.S.) Inc. for authorization of a proposed transaction in which AltaGas will indirectly acquire 100% of the interests of GWF Energy from various financial entities.
GWF Energy is an exempt wholesale generator with market-based rate (MBR) authority that owns and operates three gas-fired generation facilities in California; a 330-MW combined cycle facility located in Tracy, California (Tracy Facility); a 97 MW peaking facility located in Hanford, California (Hanford Facility); and a 96 MW peaking facility located in Lemoore, California (Henrietta Facility).
Each of the facilities is located in the California Independent System Operator (CAISO) market. The capacity and output from each of the facilities is fully committed under a long-term contract with Pacific Gas & Electric (PG&E).
The buyer, AltaGas, is an indirect whollyowned subsidiary of AltaGas Ltd., a publicly-traded Canadian corporation. AltaGas Ltd. is an energy infrastructure business that directly, and indirectly through its subsidiaries, focuses on natural gas and power assets, and regulated utilities, throughout Canada and the United States. AltaGas Ltd. develops and owns power generation projects and gas utility companies in the United States.
Under this deal, AltaGas will indirectly purchase 100% of the interests in GWF Energy.
AltaGas Ltd. announced this deal on Sept. 21, saying it is with Highstar Capital IV and is worth US$642 million.