The Federal Energy Regulatory Commission on Thursday approved power plant deals for gas-fired generation in New York and Colorado.
In the larger deal, PowerTransitions, an independent power producer, has agreed to buy the 1,242-MW, gas- and oil-fired Roseton power plant in Newburgh, New York, from a Castleton Commodities International subsidiary, according to FERC’s decision. Partners Group Holding, a private equity firm based in Switzerland, owns PowerTransitions.
Reflecting its business strategy, PowerTransitions aims to use the Roseton power plant as part of an “energy campus” it intends to develop to serve data centers and other energy intensive industries.
“Its scale and existing grid infrastructure make it an ideal candidate for co-location development into a robust energy campus, including new energy storage systems,” PowerTransitions said when it announced the deal last month.
The power plant started operating in 1974. It is in the New York Independent System Operator’s Zone G, which covers the Hudson Valley near New York City. Terms of the deal weren’t disclosed.
PowerTransitions aims to close its deal with Castleton by the end of the year. The New York Public Service Commission approved the transaction on Thursday.
Last month, the company bought five gas-fired power plants in New York totaling 323 MW.
FERC approves TransAlta deal
FERC also approved TransAlta Holding’s roughly $1 billion deal to buy two gas-fired power plants totaling 319 MW from subsidiaries of Kindle Energy, which is 90% owned by Blackstone, an investment company.
The 163-MW Mountain Peak and the 157-MW Canyon Peak power plants near Denver are under long-term tolling agreements to United Power and CORE Electric Cooperative, respectively.
“This acquisition adds new, high-quality, low-risk assets in a core market for us,” Joel Hunter, TransAlta president and CEO, said June 3 in a press release.
It “establishes a strategic foothold in Colorado, a state we believe has accelerating growth potential,” Hunter said.
The power plants will generate about $33 million a year in cash flow that can be redeployed to growth prospects, such as data centers in Centralia, Washington, and Alberta, Canada, according to Hunter.
TransAlta owns a coal-fired power plant in Centralia. The Calgary, Canada-based independent power producer aimed to shutter it at the end of last year, but the U.S. Department of Energy ordered the company to keep operating the plant. TransAlta plans to convert it to run on gas under a deal it reached with Puget Sound Energy.
The Mountain Peak power plant has been operating since September and Canyon Peak is expected to come online before October, according to TransAlta. TransAlta expects the deal will close late this year.
