NRG cleared by FERC to sell three Illinois power plants to LSP Development

The Federal Energy Regulatory Commission on July 8 approved a May 18 application from RA Generation LLC, Aurora Generation LLC, NRG Rockford LLC (Rockford I), NRG Rockford II LLC (Rockford II) and NRG Wholesale Generation LP for a power plant sale deal involving three facilities.

Under this approved deal: Aurora Generation will acquire the Aurora Generating Station and certain associated assets from NRG Wholesale; and RA Generation will acquire all of the membership interests of Rockford I and Rockford II.

  • NRG Wholesale is an indirect, wholly owned subsidiary of NRG Energy (NYSE: NRG). NRG Wholesale owns and operates a 878-MW natural gas-fired generation facility (Aurora Generating Station) located in Du Page County, Illinois, which is interconnected with the transmission grid controlled by PJM Interconnection. NRG Wholesale is an exempt wholesale generator (EWG) and is authorized to sell electric energy, capacity, and certain ancillary services at market-based rates.
  • Rockford I is an indirect, wholly owned subsidiary of NRG. It owns and operates an approximately 297-MW natural gas-fired facility (Rockford I Facility) located in Rockford, Illinois, which is interconnected with the transmission grid controlled by PJM. Rockford I is an EWG and is authorized to sell electric energy, capacity, and certain ancillary services at market-based rates.
  • Rockford II is an indirect, wholly owned subsidiary of NRG. It owns and operates an approximately 153-MW natural gas-fired facility (Rockford II Facility) located in Rockford, Illinois, which is interconnected with the transmission grid controlled by PJM. Rockford II is an EWG and is authorized to sell electric energy, capacity, and certain ancillary services at market-based rates.

One of the buyers, RA Generation, is an indirect subsidiary of LSP Development. LSP Development develops, owns, and operates independent power projects in the United States and is developing merchant transmission projects in parts of the United States. RA Generation was formed to acquire and hold the membership interests of Rockford I and Rockford II. Applicants state that it currently has no assets.

The other buyer, Aurora Generation, is an indirect subsidiary of LSP Development. It was formed for the purposes of acquiring, owning, and operating the Aurora Generating Station and associated assets. Applicants state that it currently has no assets. All of the membership interests of Aurora Generation are owned by RA Generation. Aurora Generation is authorized to sell electric energy, capacity, and certain ancillary services at market-based rates and has filed a notice of self-certification of EWG status.

LSP Development, RA Generation and Aurora Generation are affiliated with the following entities that own or control generation facilities in the PJM market:

  • Doswell Limited Partnership, an EWG that owns and operates an approximately 814 MW natural gas-fired facility in Ashland, Virginia;
  • LSP University Park LLC, an EWG that owns and operates an approximately 504 MW natural gas-fired, simple-cycle facility near University Park, Illinois;
  • Riverside Generating Co. LLC, an EWG that leases and operates, and has the right to the output of an approximately 825 MW natural gas-fired facility in Lawrence County, Kentucky;
  • Seneca Generation LLC, an EWG that owns and operates a 451 MW pumped storage station in Warren, Pennsylvania
  • University Park Energy LLC, an EWG that owns and operates an approximately 300 MW natural gas-fired peaking facility near University Park, Illinois;
  • West Deptford Energy LLC, an EWG that leases and operates an approximately 669 MW natural gas-fired, combined-cycle facility in West Deptford Township, New Jersey; and
  • White Oak Solar Energy LLC, which owns and operates an approximately 10 MW solar qualifying facility in Dover, Delaware.

Under a Purchase and Sale Agreement dated May 11, Aurora Generation will acquire the Aurora Generating Station and certain associated assets from NRG Wholesale; and RA Generation will acquire all of the membership interests of Rockford I and Rockford II.

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.