FERC okays sale of Weyerhaeuser QFs to International Paper

On July 11, the Federal Energy Regulatory Commission approved a May 6 application from Weyerhaeuser NR Co. and International Paper Co. for authorization for the acquisition by International Paper from Weyerhaeuser of four pulp mills and one modified fiber mill, which include five qualifying facilities (QFs) totaling 243.05 MW of QF generation.

The facilities affected consist of the QFs and associated interconnection equipment. International Paper is a global paper and packaging company that owns forest products assets, including mills with on-site generation capacity as QFs and has market-based rate authorization. Weyerhaeuser is engaged in the business of forest products and owns forest and pulp product assets, including mills with on-site generation capacity as QFs, and it has market-based rate authorization.

Under the terms of a purchase agreement, this transaction is expected to be completed in the fourth quarter of 2016. The five QFs have a total capacity of 243.05 MW. Of the total, 64 MW are located within the Tennessee Valley Authority (TVA) balancing authority area (BAA), 140.95 MW are located within the Southern Company Services (SOCO) BAA, and 38.1 MW are located within the Carolina Power & Light (CPLE) BAA.

The sites of the five mills with associated QFs are:

  • Columbus, Mississippi – The Columbus Facility is located in Lowndes County in Columbus, Mississippi, within the TVA BAA. The facility has a capacity of 64 MW.
  • Flint River, Georgia – The Flint River facilities are located within the SOCO BAA, and include two generating units: Turbine Generator No. 1 is a qualifying topping-cycle cogen and has a capacity of 43.75 MW; and Turbine Generator No. 2 is a condensing steam generator facility and has a capacity of 28 MW.
  • Port Wentworth, Georgia – The Port Wentworth Facility is located within the SOCO BAA. It is a qualifying cogeneration facility and has a capacity of 69.2 MW.
  • New Bern, North Carolina – The New Bern Facility is located within the CPLE BAA. It is a qualifying cogeneration facility and has a capacity of 38.1 MW.
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.