Generation Pipeline LLC applied Jan. 20 to the Public Utilities Commission of Ohio for authority to issue long-term debt in the aggregate principal amount of up to $33.5 million, with that money to support the construction of a gas pipeline lateral to an 800-MW power project in the Toledo area.
Generation Pipeline is a direct and wholly owned subsidiary of North Coast Gas Transmission LLC. North Coast is currently developing the Oregon Lateral Pipeline, an approximately 22-mile, 24-inch, high-pressure steel pipeline having a capacity of approximately 330,000 MMBtu/day and associated facilities that will interconnect with and serve an approximately 800-MW combined cycle power plant in Oregon, near Toledo.
North Coast received a certificate for the construction of the Oregon Lateral Pipeline from the Ohio Power Siting Board, effective as of Jan. 6, 2015.
Oregon Clean Energy LLC (OCE) is the owner and prospective operator of the Oregon Clean Energy Center and is not affiliated with either North Coast or Generation Pipeline. In May 2013, the Ohio Power Siting Board issued a Certificate for Environmental Compatibility and Public Need to OCE for the construction and operation of the OCE facility.
North Coast has entered into a special contract with OCE related to the construction of the Oregon Lateral Pipeline and for natural gas service to the Oregon Clean Energy Center. North Coast formed Generation Pipeline to take ownership of and operate the Oregon Lateral Pipeline. Generation Pipeline will transport and supply natural gas to the Oregon Clean Energy Center by virtue of an assignment of the special contract between North Coast and OCE to Generation Pipeline.
In order to finance the construction of the Oregon Lateral Pipeline, Generation Pipeline is seeking commission authorization to enter into and borrow funds under a long-term debt arrangement, evidenced in part by a Credit Agreement with ZB N.A., a national banking association, as administrative agent, and ZB N.A., a national banking association doing business as Amegy Bank, as the lender (and perhaps other lenders), in the aggregate principal amount of up to $33.5 million. The closing date for the financing is expected to be in January 2016; however, as a condition of the financing commission authorization is required prior to Generation Pipeline drawing/borrowing funds under this long-term debt arrangement.
In other developments related to this project:
- The Public Utilities Commission of Ohio in September 2015 approved Generation Pipeline LLC as a natural gas supplier in the state of Ohio.
- The Ohio Power Siting Board in June 2015 approved two fairly minor amendments to its May 2013 approval of a siting certificate for the Oregon Clean Energy project. The company said in the amendment application that the power project was due for commercial operation between March and July 2017.