FERC approves sale of gas-fired power plant in California

The Federal Energy Regulatory Commission on Jan. 12 approved a Dec. 4 application from Bicent (California) Malburg LLC (BCM) requesting commission authorization for a transaction whereby Marlburg Generation LLC will acquire 100% of the direct equity ownership interests in Bicent (California) LLC, which owns 100% of the indirect equity ownership interests in BCM.

Following this transaction, BCM will be a wholly-owned, indirect subsidiary of Marlburg Generation, which is a wholly owned subsidiary of Bicent Power LLC.

BCM is an exempt wholesale generator (EWG) with market-based rate authority that owns and operates an approximately 158.8-MW natural gas-fired facility located in Vernon, California, within the California Independent System Operator (CAISO) region. This facility is interconnected to the distribution system owned by the City of Vernon, California, and its entire output is sold to the City of Vernon, under a power purchase tolling agreement, effective through April 10, 2028.

Bicent (California) LLC is currently owned 8.66% by Beowulf (California) LLC and 91.34% by Bicent Prime Holdings LLC. Bicent Power currently owns 100% of San Joaquin Cogen LLC (SJC), an EWG with market-based rate authority, which owns a 48-MW facility located in Lathrop, California, within the CAISO market. BCM stated that except for the generating facility owned by SJC, Bicent Power does not own or control any electric generation facilities located in the CAISO market.

BCM stated that Bicent Power also owns additional generation facilities with combined capacities of approximately 202 MW located in Brush, Colorado; approximately 115.7 MW located in Hardin, Montana; and approximately 85 MW located in Lowell, Massachusetts.

BCM stated that investment funds managed or advised by GSO Capital Partners LP (GSO) hold an approximately 96.5% equity ownership interest in Bicent Power and is the majority controlling owner of Bicent Power. BCM added that the remaining minority owners of Bicent Power each hold less than a 10% equity ownership interest in Bicent Power and do not otherwise control Bicent Power. GSO represents the credit-oriented business of The Blackstone Group LP, which is a participant in the leveraged finance markets. Blackstone is a global alternative asset manager and provider of financial advisory services.

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.