Georgia Power seeks okay to transfer two power purchase deals to International Paper

Georgia Power on Sept. 22 asked the Georgia Public Service Commission for approval to transfer two power purchase deals with Weyerhaeuser NR Co. to a new counter-party, International Paper.

In March 2014, Georgia Power and Weyerhaeuser NR entered into contracts for the purchase of firm capacity and energy utilizing proxy methodology for 20 MW of capacity and energy generated by Weyerhaeuser’s Flint River Facility and 20 MW of capacity and energy generated by Weyerhaeuser’s Port Wentworth Facility. The Flint River Contract was amended in July 2014. The Port Wentworth Contract was amended in October 2014, February 2015 and June 2016. All such amendments have been approved by the Georgia PSC.

Said Georgia Power’s Sept. 22 request: “Weyerhaeuser desires to enter into a Change of Control Transaction with International Paper Company (‘International Paper’), upon the conclusion of which Flint River and Port Wentworth will be owned by International Paper. Copies of the Consent and Amendments to the Contracts have been provided to Commission Staff. Georgia Power hereby requests that the Commission approve Georgia Power’s execution of the Consents.”

Notable is that on July 11, the Federal Energy Regulatory Commission approved a May 6 application from Weyerhaeuser NR and International Paper 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.

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 sites of the five mills with associated QFs are:

  • Columbus, Mississippi – The Columbus Facility is located in Lowndes County in Columbus, Mississippi. The facility has a capacity of 64 MW.
  • Flint River, Georgia – The Flint River facilities 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 a qualifying cogeneration facility and has a capacity of 69.2 MW.
  • New Bern, North Carolina – The New Bern Facility 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.