Bayonne Energy Center LLC, PER Development Holdings LLC and Ragfy Holdings LLC applied Feb. 10 at the New York State Public Service Commission for an approval related to an upstream change of ownership for Bayonne Energy Center.
They asked for a declaratory ruling that the New York Public Service Commission need not review under Public Service Law (PSL) Section 70 the proposed corporate transaction that would result in changes in BEC’s upstream ownership. In the alternative, they requested that the commission grant approval for the proposed transaction pursuant to Section 70.
Petitioners also requested that the commission confirm that lightened regulation will continue to be applied to Bayonne Energy Center as provided in a 2014 order.
Bayonne Energy Center constructed and now operates the Bayonne Energy Center Project, which includes: a 512 MW multi-unit, simple-cycle natural gas-fired plant located in Bayonne, New Jersey; and a 345-kV (ac) submarine electric transmission system routed from Bayonne to the Consolidated Edison Co. of New York (Con Ed) Gowanus Substation in Brooklyn, New York. The submarine cable constitutes a dedicated generator lead for the generating facility to supply electricity into the New York market.
Bayonne Energy Center is indirectly owned 100 percent by PER Development Holdings, a unit of ArcLight Energy Partners Fund III LP.
Under the proposed transaction, PER Development Holdings would sell all its indirect ownership interests in Bayonne Energy Center to Ragfy, an indirect unit of Macquarie Infrastructure Co. LLC (MIC LLC). MIC LLC is a publicly-listed company that is externally managed by a wholly-owned indirect subsidiary of Macquarie Group Ltd. (MGL). MGL is a global provider of banking, financial, advisory, investment, and funds management services.
MGL is affiliated with entities that own or control electric generation and electric transmission facilities within the U.S. None of those facilities is located in the New York Independent System Operator (NYISO) Balancing Authority Area. MGL indirectly owns 100 percent of Macquarie Energy LLC, which operates as a power marketer in various markets in the United States and is authorized by FERC to sell energy, capacity, and ancillary services at market-based rates to wholesale purchasers. Macquarie Energy also operates as a natural gas trading and marketing company and trades oil and coal. Macquarie Energy does not own or control any electric generation, transmission, or distribution facilities.
After the transaction, Ragfy would become the indirect owner of 100 percent of the interests in Bayonne Energy Center, and neither ArcLight Fund III nor any of its affiliates would retain any direct or indirect ownership interest in Bayonne Energy Center. Bayonne Energy center would remain the owner of its power plant.