FERC okays sale of 189-MW West Valley plant to Utah Municipal Power Agency

West Valley consists of five natural-gas fired simple cycle units

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The members of the Federal Energy Regulatory Commission on July 28 approved an April 29 application from West Valley Power LLC for authorization for a transaction whereby West Valley will sell the generation and transmission assets, and certain associated contracts, permits, and operating records, of the West Valley Facility to the Utah Municipal Power Agency.

West Valley owns the West Valley Facility, as well as interconnection facilities necessary to connect it to the transmission grid. The West Valley Facility consists of five natural-gas fired simple cycle units with a nominal capacity of 189 MW, located in West Valley City, Utah, within the PacifiCorp East (PACE) balancing authority area.

West Valley is a wholly owned subsidiary of West Valley Power Holdings LLC, which in turn is an indirect, wholly owned subsidiary of Wayzata Opportunities Fund III LP. Opportunities Fund III is a private investment vehicle. Wayzata Investment Partners LLC is the manager of Opportunities Fund III.

Utah Municipal is a political subdivision of the State of Utah, with each of Utah Municipal’s member municipal electric systems physically interconnected with PacifiCorp’s transmission system.

Under an asset purchase agreement between West Valley and Utah Municipal, West Valley will sell the generation and transmission assets, and certain associated contracts, permits and operating records of the West Valley Facility. Following consummation of the deal, West Valley states that it will execute a tolling agreement with Utah Municipal for a portion of the West Valley Facility capacity. West Valley said it therefore intends to maintain its market-based rate authority for as long as the tolling deal remains in effect. However, West Valley states that it will relinquish its EWG status following the closing of the transaction because it will no longer own or operate a generation facility. In addition, West Valley states that Utah Municipal will use the portion of the West Valley Facility that is not subject to the toll primarily to provide wholesale power to its member municipalities.

Barry Cassell
About the Author

Barry Cassell

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 26 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.

Barry can be reached at barryc@pennwell.com.

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