The Federal Energy Regulatory Commission on Nov. 19 approved a partial sale of ownership for CPV Sentinel LLC, which owns a gas-fired power plant in California.
On Sept. 23, CPV Sentinel filed an application for commission authorization of a proposed transaction in which Competitive Power Ventures Holdings LLC (CPV Holdings) will transfer all of its membership interests in CPV Power Development Inc. (CPV PDI) to PG Coachella Power Holdings Inc. (PG Coachella).
CPV Sentinel is an exempt wholesale generator with market-based rate authority. It owns and operates an 800-MW natural gas-fired facility located in Riverside County, California. The facility is interconnected to the transmission system owned by Southern California Edison (SCE) and operated by the California Independent System Operator (CAISO). CPV Sentinel sells all of the output from the facility to SCE under a long-term power sale agreement.
CPV Sentinel is owned 50% by Sentinel Power Holdings LLC (Sentinel Power Holdings), and 50% by Diamond Voltage Holdings LLC (Diamond Voltage). Sentinel Power Holdings is owned 50% by CPV Sentinel Holding LLC (CPV Sentinel Holding) and 50% by Diamond Sentinel LLC (Diamond Sentinel). Diamond Voltage is owned indirectly 50% by Diamond Sentinel and 50% by Voltage Finance LLC. CPV Sentinel Holding is wholly owned by CPV PDI, which is wholly owned by CPV Holdings. Warburg Pincus Private Equity IX LP and Warburg Pincus Equity Partners Liquidating Trust have a collective ownership interest of 95.2% of the voting shares in CPV Holdings.
The now-approved transaction relates only to the 50% membership interest of Sentinel Power Holdings owned by CPV Sentinel Holding. PG Coachella is a newly formed portfolio company owned by investment vehicles advised or managed by Partners Group (USA) Inc. or its affiliates (called the “PG Investment Vehicles”), all of which are subsidiaries of Partners Group Holding AG. Partners Group is a global private markets investment management firm headquartered in Zug, Switzerland, and publicly traded on the Swiss stock exchange.
Under this transaction, CPV Holdings will transfer all of its capital stock in CPV PDI to PG Coachella. As a result, PG Investment Vehicles will indirectly hold all of the issued and outstanding capital stock in CPV PDI, indirectly hold all of the membership interests in CPV Sentinel Holding, indirectly hold 50% of the membership interests in Sentinel Power Holdings, and indirectly hold 25% of the membership interests in CPV Sentinel. Warburg Pincus will no longer hold any indirect interests in CPV Sentinel.