FERC okays Energy Capital’s sale of 654-MW Empire plant in New York

The Federal Energy Regulatory Commission on Dec. 9 approved an Oct. 18 application from Empire Generating Co. LLC and TTK Power LLC for approval of the sale of 100% of the indirect ownership interests in Empire Generating to TTK Power.

Empire Generating owns and operates an approximately 653.7-MW natural gas-fired plant and related interconnection facilities located in the City of Rensselaer and towns of East Greenbush and North Greenbush, New York, within the New York Independent System Operator (NYISO) market. Empire Generating is an exempt wholesale generator (EWG) and is authorized to make wholesale sales of electric capacity, energy, and ancillary services at market-based rates.

Empire Generating is directly and wholly owned by Empire Gen Holdco LLC (Empire Gen Holdco), which in turn is directly and wholly owned by Empire Gen Holdings Inc. (Empire Gen Holdings), which in turn is directly and wholly owned by four affiliated investment funds. The four investment funds are: Energy Capital Partners I LP, Energy Capital Partners I-A LP, Energy Capital Partners I-B LP and ECP I (NE Energy IP) LP.

These funds are owned: directly by Energy Capital Partners GP I LLC (ECP GP I), as general partner; and directly and/or indirectly by various passive limited partners. ECP GP I is a wholly owned subsidiary of Energy Capital Partners LLC, which is owned by four individual persons that are focused on the development and acquisition of, and investment in, energy infrastructure assets, and related ownership, operation and management of these assets, including electric generation and inputs to electric generation in North America.

TTK Power is a newly-formed company that is jointly owned by Tyr Energy Inc., The Kansai Electric Power Co. Inc. and Tokyo Gas America Ltd. (TGA).

Tyr Energy is owned by ITOCHU International Inc. (ITOCHU), which holds a 20% interest, and by I-Power Investment Inc., which holds an 80% interest. ITOCHU and I-Power are wholly owned subsidiaries of ITOCHU Corp. out of Japan. Tyr Energy owns equity interests in several North American independent power assets, develops independent power plants in North America, and provides asset management services to certain facilities.

The applicants told FERC that Tyr Energy is affiliated with:

  • Tenaska Virginia Partners LP, which owns a 900-MW natural gas-fired plant in Fluvanna County, Virginia; and
  • Commonwealth Chesapeake Co. LLC, which owns a 318-MW oil-fired plant in Accomack County, Virginia.

Tyr Energy is also affiliated with:

  • Future Power PA LLC, which is developing a 337-MW natural gas-fired plant in Schuylkill County, Pennsylvania; and
  • Hickory Run Energy LLC, which is developing a 1,000-MW natural gas-fired plant in Lawrence County, Pennsylvania.

Kansai is a vertically integrated power company in Japan that provides electricity to the Kansai region. Kansai engages in overseas independent power producer projects located in the Philippines, Thailand, Taiwan, Singapore, Indonesia, Laos, and Australia. Kansai wholly owns KPIC USA LLC, a holding company of which the principal object is to invest in electric power and other energy related business around the world. Neither Kansai nor any of its affiliates own or control electric generating or transmission facilities in the United States.

TGA is a direct, wholly owned subsidiary of Tokyo Gas Co. Ltd. (TG), a gas utility formed under the laws of Japan that is publicly traded on the Tokyo Stock Exchange. TGA has invested in various energy-related businesses such as oil and gas acreage in the Eagle Ford and Barnett basins in the United States. TGA and its affiliates also own a minority interest in two natural gas-fired generation facilities in Mexico and a utilities plant that provides steam and water to a manufacturing host located in Spartanburg, South Carolina.  TGA, TG, and their affiliates do not own or control electric generating or transmission facilities in the U.S.

Tyr Energy, Kansai and TGA will purchase, through TTK Power, 100% of the membership interests in Newco LLC. Tyr Energy will indirectly own 50% of the membership interest in TTK Power, and Kansai and TGA each will indirectly own 25% of TTK Power.

Energy Capital Partners said Oct. 13 in announcing this deal that it purchased Empire in July 2007 during its development stage and prior to construction commencement. The plant began commercial operations in September 2010 after a successful three-year construction period.

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.