FERC okays sale of 4,953 MW of power plants by Tenaska to ArcLight

The Federal Energy Regulatory Commission on Dec. 1 approved an Oct. 8 application from several affiliates of Tenaska Energy for the sale of 4,953 MW of mostly gas-fired capacity by Tenaska to funds managed by Arclight Capital Partners LLC.

The Tenaska applicant companies included Astoria Generating Co. LP, Crete Energy Venture LLC, Lincoln Generating Facility LLC, New Covert Generating Co. LLC and Rolling Hills Generating LLC. They sought commission authorization for a transaction whereby ArcLight-affiliated Eastern Generation LLC will acquire 100% of the indirect equity ownership interests in these companies.

Applicants stated that they are currently affiliated with Tenaska Energy and certain other generation-owning entities through controlling interests owned by certain individuals. Tenaska is an independent developer and owner of power production facilities located throughout the United States. 

  • Astoria Generating owns and operates facilities in the New York Independent System Operator (NYISO) market and in the New York City (NYC) submarket. That includes the Astoria Generating Station, an approximately 1,333 (summer rating) natural gas- and oil-fired facility in Astoria, Queens. The summer rating for the Astoria station conservatively includes the capacity of Astoria Unit 4, which currently is mothballed. Also the Gowanus Gas Turbine Station, an approximately 549 MW (summer rating) fuel oil- and natural gas-fired facility consisting of simple cycle combustion turbine units on barges in Gowanus Bay in Brooklyn. And there is the Narrows Station, an approximately 283 MW (summer rating) natural gas- and fuel-oil fired facility consisting of simple-cycle combustion turbine units on barges in Upper New York Bay in Brooklyn.
  • Crete owns and operates an approximately 300-MW natural gas-fired facility located in Crete, Illinois, and within the PJM Interconnection market.
  • Lincoln owns and operates approximately 623-MW natural gas-fired facility located in Manhattan, Illinois, within the PJM market.
  • New Covert owns and operates an approximately 1,040-MW natural gas-fired, combined-cycle facility in Van Buren County, Michigan, in the Midcontinent Independent System Operator (MISO) market. Applicants noted that this facility is expected to move to the PJM market once new interconnection facilities are completed, anticipated to occur on June 1, 2016.
  • Rolling Hills owns and operates an approximately 825-MW natural gas-fired facility in Vinton County, Ohio, which is located in the PJM market.

The parties said in the application that they intend to close the transaction as soon as possible, subject to obtaining all necessary regulatory authorizations. Accordingly, they requested a commission decision by Dec. 7.

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.