The Federal Energy Regulatory Commission on Sept. 22 approved an Aug. 17 application from CPV Towantic LLC, Towantic Energy Holdings LLC (Towantic Holdings), Aircraft Services Corp. (known as the “Seller”) and Ullico Infrastructure Master Fund LP (Ullico Fund) for a sale of power plant interests.
A new entity will purchase a 27.96% membership interest in Towantic Holdings from the Seller, Aircraft Services, which is a subsidiary of General Electric (NYSE: GE). CPV Towantic is constructing and will own and operate a 750-MW facility and associated interconnection facilities to be located in Oxford, Connecticut. The Towantic Facility will be interconnected to the transmission system owned by Connecticut Light & Power and operated by ISO New England. CPV Towantic is an exempt wholesale generator with market-based rate authority.
CPV Towantic Holding Co. LLC (CPV Towantic Holding) owns 51% of CPV Towantic’s membership interests. Global Infrastructure Partners II-B Feeder Fund LP, Global Infrastructure Partners II-A LP, Global Infrastructure Partners II‐C LP, GIP II-C Eagle AIV LP, Global Infrastructure Partners II-D1 LP and GIP Friends & Family Fund LP (collectively called the “GIP II Funds”) indirectly and wholly own CPV Towantic Holding. Applicants stated that the interests of the GIP II Funds in CPV Towantic will be unaffected by this now-approved transaction.
Towantic Holdings owns 49% of the membership interests of CPV Towantic. Seller (GE) owns 100% of Towantic Holdings.
The new buyer will be formed for the purpose of engaging in this transaction. Once formed, the buyer will be wholly owned by Ullico Fund and managed by Ullico Investment Advisors Inc. (Ullico Advisors) pursuant to an agreement with UIF GP LLC (UIF GP). UIF GP is the general partner of Ullico Fund and is wholly owned by Ullico Advisors. Ullico Advisors is a direct, wholly owned subsidiary of Ullico Inc., a labor-owned insurance and financial services company.
Neither the buyer nor its affiliates own or control any generation capacity in the Connecticut or Southwest Connecticut submarkets of ISO-NE.
Under a draft Purchase and Sale Agreement, Seller (GE) will transfer a 27.96% ownership interest in Towantic Holdings to the buyer, and Seller will continue to own a 72.04% interest in Towantic Holdings. As a result of this deal, CPV Towantic Holdings will continue to own 51% of CPV Towantic, and Towantic Holdings will continue to own 49% of CPV Towantic. Post-transaction, the buyer will indirectly own 13.7% of CPV Towantic, and Seller’s indirect interests in CPV Towantic will reduce to 35.3%.