FERC on Nov. 29 approved a Sept. 23 application from James River Genco LLC and City Point Energy Center LLC covering the sale by James River and acquisition by City Point of an existing generation facility and associated interconnection facilities and related assets.
James River owns and operates a 114.8-MW, coal-fired cogeneration facility located in Hopewell, Virginia, which is interconnected to the transmission system owned by Dominion Virginia Power and operated by PJM Interconnection. This facility is a capacity resource in PJM and is located in the AP South submarket.
James River is a wholly owned subsidiary of Cogentrix Virginia Financing LLC, which is wholly owned by Cogentrix Virginia Financing Holding Co. LLC (Cogentrix HC). Cogentrix HC is 50% owned by Cogentrix Power Asset Holdings LLC (Cogentrix Holdings) and 50% owned by Quantum Virginia Power LLC (Quantum). Cogentrix Holdings is indirectly owned by investment fund vehicles sponsored and managed by The Carlyle Group LP, and Quantum is managed by Quantum Utility Generation LLC.
City Point was formed for the purpose of acquiring the facility and intends to sell the electric output from the facility, temporarily, at wholesale. James River will transfer ownership and control of the facility and related equipment, contracts, including the facility’s interconnection agreement and its PJM capacity obligation for the 2016/2017 deliver year, and books and records to City Point.
By letter dated May 25, 2016, PJM approved James River Genco’s request to deactivate the existing coal-fired facility as of May 31, 2017. After the facility is decommissioned, City Point intends to construct and operate a new approximately 50 MW steam and electric generation facility firing a natural/landfill gas mixture.
City Point intends to continue operation of the facility while it constructs a gas-fired facility that will provide steam to site host Advansix Resins & Chemicals LLC but will not produce electricity. Once the steam generation facility is operating, the existing facility will be taken offline and decommissioned. The 50-MW facility that will produce both steam and power will be built after the steam-only operation.
In related news:
- The Virginia State Corporation Commission on Nov. 16 approved this purchase deal. City Point said it would apply later with the state commission for approval of the 50-MW project
- City Point won a Nov. 17 approval from FERC on its Sept. 23 application for acceptance of its proposed market-based rate tariff and authorization to sell energy, capacity, and certain ancillary services at market-based rates in the PJM balancing authority area