Two affiliates of equity investor ArcLight Capital Partners on Jan. 9 notified the Federal Energy Regulatory Commission that they have completed a buy of stakes in the coal-fired Keystone and Conemaugh power plants in Pennsylvania from units of Exelon (NYSE: EXC).
On Dec. 23, the commission authorized the acquisition of existing generation facilities, related to the transfer of undivided ownership interests in the Conemaugh Electric Generating Station and Keystone Electric Generating Station from Constellation Power Source Generation LLC and Exelon Generation Co. LLC to Arclight's Chief Conemaugh Power LLC and Chief Keystone Power LLC. "This letter is to advise the Commission that the Transaction was completed on December 31, 2014," said the Jan. 9 filing.
Constellation Power had held a 20.99% undivided ownership interest as a tenant-in-common in the Keystone Station and a 10.56% undivided ownership interest as a tenant-in-common in the Conemaugh Station. Exelon Generation held a 20.99% undivided ownership interest as a tenant-in common in the Keystone Station and a 20.72% undivided ownership interest as a tenant-in-common in the Conemaugh Station. Constellation Power and Exelon Generation had rights to approximately 535 MW of energy and capacity from Conemaugh and 718 MW of energy and capacity from Keystone.
Notable is that the PPL Corp. (NYSE: PPL) stakes in both plants are to be spun off in the new Talen Energy.
Keystone is a 1,711-MW coal-fired facility located in Shelocta, Pa. Conemaugh is a 1,711-MW coal-fired facility located in New Florence, Pa. They are interconnected to the transmission system owned by Pennsylvania Electric and operated by PJM Interconnection.
Chief Conemaugh and Chief Keystone are wholly-owned indirect subsidiaries of ArcLight Fund V, which is a private equity fund managed by ArcLight Capital Partners.
The Federal Energy Regulatory Commission on Dec. 19 accepted market-based rate tariffs for Chief Keystone and Chief Conemaugh in relation to operation of these ownership stakes.