Filed Sept. 21 at the Public Utility Commission of Texas was a draft order worked out by Western Generation Partners LLC and commission staff that would approve a July 25 application covering Western Generation’s proposed acquisition of 100% of the ownership interests in the Borger Facility, a 230-MW, gas-fired plant.
This facility is located near Borger, Texas, in the Southwest Power Pool region. Western Generation is a joint venture among Harbert Power Fund V LLC, UBS Asset Management Funds Ltd. and The Northwestern Mutual Life Insurance Co.
The Borger Facility at this point is wholly owned by Borger Energy Associates LP, which is a wholly owned subsidiary of First Reserve Energy Infrastructure Fund.
HPF V, UBSI and NML have formed Westem Generation, a joint venture holding company that will own, indirectly, 100% of the membership interests in a Delaware limited liability company to be formed that will act as the buyer under a Purchase and Sale Agreement. The seller will convey 100% indirect ownership interest in the Borger Facility to Western Generation.
UBSI and NML, through subsidiaries, own electric generation facilities in Texas that offer electricity for sale in the state. As a result of the transaction, Western Generation will also acquire a 604-MW gas-fired facility located outside of the state but within SPP.
The proposed order and the application itself don’t further identify this second, 604-MW plant. The application gives a list of plants that Western Generation would control after this transaction, including 100% of the 604-MW, gas-fired Hobbs plant in the SPP region. That is the only facility on the list anywhere near the 604-MW figure.
Notable is that in December 2011, equity investor First Reserve Corp. announced that it had agreed to acquire a diversified portfolio of U.S. contracted natural gas-fired power plants totaling 1,068 MW from Arclight Capital. These assets were: Crockett Cogen Project, a 240-MW natural gas cogeneration plant located in Crockett, CA; Hobbs Generating Station, a 604-MW natural gas CCGT power plant located in Hobbs, NM; the Borger Plant, a 230 MW natural and refinery gas cogeneration plant located in Borger, TX; and Waterside Power Holdings LLC, a 72-MW oil-fired peaker plant located in Stamford, CT.