The Federal Energy Regulatory Commission on Dec. 21 approved a Nov. 7 informational filing regarding the planned indirect transfer of an interest in West Deptford Energy LLC’s 669-MW (summer rating) natural gas-fired facility in West Deptford Township, New Jersey.
On the same day, West Deptford made a separate filing requesting a one-time waiver of the 90-day prior notice requirement also set forth in Schedule 2 of the PJM Interconnection OATT. Said FERC: “We accept the Informational Filing for informational purposes only and grant the Waiver Request.”
Schedule 2 of the PJM OATT provides that PJM will compensate owners of generation and non-generation resources for providing Reactive Service. Schedule 2 requires that at least 90 days before deactivating or transferring a resource receiving compensation for reactive supply and voltage support, the resource owner: submit a filing to either terminate or adjust its cost-based rate schedule to account for the deactivated or transferred unit; or submit an informational filing explaining the basis for the decision by the Reactive Power Supplier not to terminate or revise its cost-based rate schedule.
West Deptford is an Exempt Wholesale Generator that leases and operates the West Deptford Facility. West Deptford’s membership interests are owned entirely by West Deptford Energy Holdings LLC. The membership interests of West Deptford Energy Holdings are owned entirely by Pirlo Energy Investments LLC, whose membership interests are owned by Pirlo Energy Holdings LLC (Pirlo). The Class A membership interests of Pirlo are owned by various entities, including MC West Deptford Energy Investments LLC (MC West Deptford), which owns a 35 percent share.
Pirlo’s current investors acquired their interests in a transaction that was completed on Sept. 13, 2016. More recently, MC West Deptford has agreed to transfer half of its 35% interest in Pirlo to KPIC USA LLC. West Deptford said it anticipates obtaining all other required regulatory approvals and third-party consents on or before Dec. 27, 2016. West Deptford claims that no change in the Reactive Service revenue requirement is necessary because neither the rate, nor the name or identity of the entity collecting the rate will change as a result of the transaction.