Cayuga Operating Co. LLC and Somerset Operating Co. LLC told the Federal Energy Regulatory Commission in a June 15 notice that on May 16, pursuant to a transaction authorized by the commission, Riesling Power LLC acquired 100% of the direct membership interests in the companies from Upstate New York Power Producers Inc. (USNYPP).
The companies said this change in status does not materially change the facts and circumstances that the commission relied upon in granting market-based rate authority to the companies.
- Cayuga is the owner and operator of a 322.5-MW (nameplate) coal-fired facility located near the town of Lansing, New York. The Cayuga Facility is interconnected to the transmission system operated by the New York Independent System Operator (NYISO). All of the output of the Cayuga Facility currently is sold into the wholesale market on a merchant basis.
- Somerset is the owner and operator of a 655-MW (nameplate) coal-fired facility located near Barker, New York. The Somerset Facility is interconnected to the transmission system operated by NYISO. All of the output of the Somerset Facility currently is sold into the wholesale market on a merchant basis.
The filing noted that Cayuga, which has been facing retirement, has entered into a Reliability Support Services Agreement (RSSA) with New York State Electric & Gas effective Jan. 16, 2014, extending through June 30, 2017. Pursuant to the RSSA, Cayuga is required to offer the electric energy associated with the Cayuga Facility, when available, into the NYISO day-ahead energy market. It also is required under the RSSA to offer the Cayuga Facility’s available net generating capability into the NYISO unforced capacity spot market auction at a de minimis price.
With the May 16 buy, Riesling Power acquired 100% of the direct membership interests in Cayuga and Somerset. Riesling Power is a direct wholly-owned subsidiary of Heorot Power LLC, which in turn is a wholly-owned subsidiary of Centennial Power LLC, which is a direct, wholly-owned subsidiary of Heorot East LLC, a direct wholly-owned subsidiary of Heorot Power Holdings LLC. Heorot Power Holdings is owned 87.82% by investment funds managed or advised by GSO Capital Partners LP (GSO). Each of the remaining owners of Heorot Power Holdings holds less than 10% of the outstanding voting interests in Heorot Power Holdings.
GSO represents the credit-oriented business of The Blackstone Group LP, which is a leading global alternative asset manager and provider of financial advisory services.