Controlling stake to be be sold in Scrubgrass coal plant in Pennsylvania

Scrubgrass Generating Co. LP on Nov. 29 told the Federal Energy Regulatory Commission that a controlling stake in the company and its waste-coal-fired power plant in Pennsylvania is about to be sold.

Scrubgrass made this informational filing regarding the planned transfer of indirect, partial upstream ownership interests in its approximately 94.7 MW (nameplate) facility located in Kennerdell, Pennsylvania. The notice was triggered by the company’s requirement for reactive supply and voltage control service provided from the facility.

Scrubgrass owns and operates the facility and it is the only physical asset owned, operated, managed, or controlled by Scrubgrass. The facility is interconnected to the transmission system owned by Pennsylvania Electric and operated by PJM Interconnection. The plant currently operates as an Incentives Act qualifying small power production facility under the Public Utility Regulatory Policies Act of 1978, as amended, and is an “eligible facility.” The commission has granted Scrubgrass authority to sell electric power, energy, and capacity at market-based rates.

Prior to this sale deal, Scrubgrass is indirectly owned by Olympus Power LLC (30%) and private equity funds managed and controlled by Ares EIF Management LLC (70%). Under a Purchase and Sale Agreement with Q Power LLC (or a special-purpose, wholly-owned affiliate thereof created solely for the purposes of consummating the transactions provided for under the agreement), EIF’s indirect 70% interests in Scrubgrass will be sold to Q Power, with Scrubgrass retaining without any change its immediate, undivided ownership both the facility and its status as the filer of the Reactive Power Rate Schedule. Olympus Power LLC’s 30% upstream interest in Scrubgrass is not affected by the agreement.

Scrubgrass commits to timely submit any post-consummation notice of change in status, Qualifying Facility self-recertification, and notifications to PJM within the applicable time periods. 

Following consummation, Scrubgrass will continue to provide reactive supply and voltage control service to PJM from the facility on the same basis and using the same equipment as it did when the Reactive Power Rate Schedule recently went into effect and as it does today.

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.