The Federal Energy Regulatory Commission on Feb. 4 approved a November 2015 application from C.P. Crane LLC and Raven Power Marketing LLC for a transaction in which Raven agrees to sell, and Middle River Power LLC agrees to purchase, 100% of the membership interests in C.P. Crane, which controls a power plant in Maryland.
C.P. Crane owns a 399-MW coal- and oil-fired facility located in Baltimore County, Maryland. The CP Crane Facility also includes limited interconnection facilities necessary to interconnect the generating facilities with the transmission system controlled by PJM Interconnection. C.P. Crane is an exempt wholesale generator and is authorized to sell electric energy, capacity and ancillary services at market-based rates. It also receives an annual revenue requirement from PJM for reactive power.
C.P. Crane is currently controlled by Talen Energy (NYSE: TLN).
The buyer, Middle River Power, is wholly owned by Avenue Energy Opportunities AIV LP. Avenue U.S. Partnership is directly owned by: Avenue Energy Opportunities Partners LLC (General Partner); Avenue Energy Blocker I LP; and various passive limited partner investors. Middle River Power will purchase, and Raven will sell, 100% of the ownership interests in C.P. Crane.
Talen Energy had announced in October 2015 that it had reached an agreement to sell this plant to an affiliate of Avenue Capital Group. The sale is part of a FERC requirement to divest certain assets in specific regions of the PJM region, with that requirement being part of a late-2014 FERC approval of the transactions that formed Talen Energy.