LS Power to sell 632-MW peaker in Alabama to investment fund

Calhoun Power Co. LLC applied March 29 at the Federal Energy Regulatory Commission for approval of a transaction whereby East Alabama Generating LLC will indirectly acquire 100% of the membership interests of Calhoun Power from Calhoun Generating LLC.

Calhoun Power requested expedited approval, by no later than May 5, for this transaction.

Calhoun Power is an EWG that has been granted market-based rate authority. Calhoun Power owns a dual-fuel (natural gas and fuel oil) simple cycle facility and associated interconnection facilities (the “Calhoun Facility”), built in 2003, with an aggregate capacity of approximately 632 MW (summer rating).

The Calhoun Facility is located in Eastaboga, Calhoun County, Alabama, approximately 100 miles west of Atlanta, Georgia, and 50 miles northeast of Birmingham, Alabama. The Calhoun Facility is interconnected to the Southern Co. transmission system at an adjacent Alabama Power substation. The capacity, energy and ancillary services capabilities of the Calhoun Facility are committed to Alabama Power under an off-take agreement through Dec. 31, 2022. This Tolling Agreement is structured such that the off-taker, Alabama Power, exercises market control over the generation facility.

All of the membership interests of Calhoun Power are owned by Calhoun Power Holdings LLC, all of whose membership interests are owned by Calhoun Generating. Calhoun Generating is an indirect subsidiary of LS Power Development LLC.

East Alabama Generating was formed for the purpose of engaging in this transaction and holding the acquired interests. It is a wholly owned subsidiary of Harbert Power Fund V LLC (HPF V), which is an investment fund. HPF V was formed to invest in EWGs, QFs and related power assets. Certain institutional investors, including pension funds, insurance companies, family offices, foundations, and affiliates’ partners, have committed capital to HPF V in exchange for passive membership interests.

East Alabama Generating intends to acquire up to 100% of the seller’s interests in Calhoun Holdings. Upon closing, it would become the sole equity owner of Calhoun Holdings, which will remain the sole owner of Calhoun Power.

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.