FERC okays NRG sale of 352-MW Shelby plant in Illinois to Rockland Capital

The Federal Energy Regulatory Commission on Feb. 22 approved a November 2015 application from NRG Wholesale Generation LP and Shelby County Energy Center LLC for a deal under which NRG Wholesale will sell and Shelby will acquire a generation facility located in Shelby County, Illinois.

NRG Wholesale is an exempt wholesale generator (EWG) that owns and operates a 352-MW facility located in Neoga, Illinois, that is interconnected with the transmission system owned by Ameren Illinois and controlled by the Midcontinent Independent System Operator. The facility includes generator interconnection facilities and a natural gas lateral that interconnects to Trunkline Gas Co. LLC’s gas transmission system.

NRG Wholesale has commission authorization to sell electric energy, capacity and certain ancillary services at market based rates. It also receives cost-based compensation for reactive power service provided from the facility. NRG Wholesale will transfer the Reactive Rate Schedule to Shelby as part of this transaction. NRG Wholesale is a unit of NRG Energy (NYSE: NRG).

Shelby County Energy Center LLC was formed to make this deal. Shelby is a wholly owned subsidiary of Rockland Power Partners II LP, an equity fund with investors that include endowments and foundations, funds of funds, pension plans and family offices, and groups of investors. Rockland II’s General Partner is Rockland Power Partners II GP LLC, which is managed by Rockland Capital LLC.

These entities constitute all of the public utility affiliates of Shelby that own or control generation in the MISO market:

  • Gibson City Energy Center LLC, which wholly owns a 228-MW facility located in Gibson City, Illinois;
  • Grand Tower Energy Center LLC, which wholly owns a 511-MW plant located in Grand Tower, Illinois;
  • Sabine Cogen LP, which owns an 87.2-MW cogeneration facility located in Orange, Texas;
  • Tilton Energy LLC, which owns and operates a 176-MW facility located in Tilton, Illinois; and
  • Michigan Power LP, which owns a and operates an 128-MW cogen located in Ludington, Michigan.

The applicants told FERC that these affiliates of Shelby, and therefore of Rockland Capital, own or control 1,130.2 MW of generation within the MISO market.

NRG Energy (NYSE: NRG) had announced on Dec. 1 of this past year that it agreed to sell two of its generating stations, including the Shelby County plant.

“NRG is focused on maintaining a robust presence and balance through conventional generation assets that complement each other in respect to geography, technology and smart fuel diversity,” said David Crane, the CEO of NRG, in the Dec. 1 statement. “By streamlining our fleet, we can create additional value for our shareholders and meet the needs of our customers with reliable, efficient and economic power. This is part of our ongoing and deliberate strategy of portfolio optimization.”

NRG said the Shelby County facility is a 352-MW natural gas-fueled, simple-cycle combustion turbine peaking plant with eight General Electric LM6000 aero-derivative combustion units.

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.