FERC okays Calpine’s $500m buy of 719-MW Granite Ridge plant

The Federal Energy Regulatory Commission on Jan. 28 approved October 2015 applications from Calpine Granite Holdings LLC and Granite Ridge Energy LLC for approval of a transaction whereby Calpine Granite will acquire all of the membership interests of Granite Ridge.

All of the membership interests of Calpine Granite are owned by Calpine Power Co., which is a direct wholly owned subsidiary of Calpine Corp. (NYSE: CPN). Calpine Granite is affiliated with the following entities that own or control generation facilities in the ISO New England (ISO-NE) market, where the generation being acquired through this transaction is located:

  • Calpine Fore River Energy Center LLC, an exempt wholesale generator that owns and operates an approximately 726 MW natural gas-fired generation facility; and
  • Westbrook Energy Center LLC, an exempt wholesale generator that owns and operates an approximately 522 MW natural gas-fired facility.

Other Calpine subsidiaries own or control generation facilities in the New York Independent System Operator market, which is first-tier to the ISO-NE market.

Granite Ridge owns and operates the Granite Ridge Generating Facility, an approximately 719 MW natural gas-fired, combined cycle station located in New Hampshire. Granite Ridge is authorized to sell energy and certain ancillary services at market-based rates. Currently, all of Granite Ridge’s membership interests are owned by Granite Ridge Holdings LLC, whose membership interests are currently owned by 15 investors. Each of these investors is a financial company not primarily engaged in energy-related business activities.

Calpine Granite will acquire all of the membership interests of Granite Ridge, in exchange for cash and other considerations. Upon consummation of this now-approved transaction, all of the membership interests of Granite Ridge will be directly owned by Calpine Granite and indirectly owned by Calpine.

Calpine on Oct. 13, 2015, announced that it has agreed to acquire this plant from Granite Ridge Holdings for $500 million. The deal is subject to working capital adjustments, Calpine said. Granite Ridge is located in the ISO New England region, where tightening market conditions have resulted in capacity revenues that will improve substantially over the next three years, Calpine said. The power plant, which commenced commercial operation in 2003, features two Siemens 501G combustion turbines, two heat recovery steam generators and one steam turbine.

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.