Calpine drops QF status for one part of Pasadena cogen plant in Texas

Pasadena Cogen LLC on Dec. 28 filed with the Federal Energy Regulatory Commission a notice of self-certification as an exempt wholesale generator.

Pasadena Cogen is a direct subsidiary of Pasadena Cogeneration LP. Both Pasadena Cogen and Pasadena Cogeneration are indirect, wholly owned subsidiaries of Calpine Corp. (NYSE: CPN).

As part of a sale/leaseback agreement, Pasadena Cogeneration sold the Pasadena Energy Center power plant in Texas to Pasadena Statutory Trust, a Connecticut statutory trust, and then entered into a long-term lease to lease the Pasadena plant back from the trust. Pasadena Cogeneration also subleased the real property associated with the plant to the trust on a long-term basis and then entered into a long-term sublease under which it sub-leases the real property back from the trust.

The Pasadena plant is an approximately 700-MW natural gas-fired cogeneration facility that is interconnected with the Electric Reliability Council of Texas (ERCOT) transmission grid and located in Pasadena, Texas. The facility was constructed in two phases:

  • Phase I, completed in 1998, consists of a combustion turbine generator and a steam-turbine generator with a combined generating capacity of approximately 205 MW (summer rating); and
  • Phase II, completed in 2000, consists of two combustion turbine generators and a steam-turbine generator with a combined generating capacity of approximately 495 MW (summer rating).

Historically, both Phase I and Phase II have been leased and operated by Pasadena Cogeneration and have also been qualifying facilities (QFs) under the Public Utility Regulatory Policies Act of 1978. In December 2015, Pasadena Cogeneration assigned its rights and obligations under the facility lease and the sublease relating to Phase II to Pasadena Cogen.

Concurrently with this filing, Pasadena Cogeneration will be filing a self-recertification of QF status for Phase I and surrendering QF status for Phase II. Going forward, Phase I will continue to be a QF leased and operated by Pasadena Cogeneration, and Phase II will be an eligible facility (but not a QF) separately leased and operated by Pasadena Cogen.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.