The Federal Energy Regulatory Commission on June 22 approved a May 10 application from Castleton Energy Services LLC, Castleton Power LLC and Fortistar Castleton LLC to authorize the sale by Castleton Energy Center LLC (CEC) of all of the outstanding equity interests in Castleton Energy and Castleton Power to Fortistar Castleton.
Castleton Power owns and operates a 72-MW, natural gas-fired facility located in Castleton-on-Hudson, New York, within the New York Independent System Operator (NYISO) market. Castleton Energy Services facilitates certain energy management services for the Castleton Facility, including for the sale of capacity and energy produced by the Castleton Facility. Castleton Power and Castleton Energy Services are authorized to sell energy, capacity and ancillary services at market-based rates.
Castleton Power and Castleton Energy are owned by CEC, which is wholly owned by Wayzata Opportunities Fund LLC, a private investment fund in which no single member owns more than a 10% equity interests. Wayzata is affiliated with other entities that engage in wholesale sales of electricity in the United States and that own interests in electric generating facilities.
Fortistar Castleton was formed for the purpose of acquiring the equity interests in Castleton Power and Castleton Energy. Fortistar Castleton is owned by Fortistar Castleton Holdings LLC, which is indirectly owned by Fortistar LLC. Fortistar LLC is engaged in the generation or sale of power from or only has indirect ownership interests in qualifying facilities, exempt wholesale generators and foreign utility companies. Fortistar LLC is 100% owned by an individual, who holds no other interests in any facilities subject to commission jurisdiction.
CEC and Fortistar LLC executed a Purchase and Sale Agreement (PSA) on April 22 that provides the terms and conditions of this now-approved transaction. Following consummation of this deal, Fortistar Castleton will own all of the equity interests in each of Castleton Power and Castleton Energy, and CEC will no longer have any ownership interest in either.