FERC Clears Gas Plant Deals in New York, Colorado Worth Over $1B
The Federal Energy Regulatory Commission approved two gas-fired power plant transactions on Aug. 13, one in New York and one in Colorado, Utility Dive reports, clearing the way for new ownership and expansion plans at both sites.
In the larger deal, independent power producer PowerTransitions will buy the 1,242-MW Roseton power plant in Newburgh, New York, from a Castleton Commodities International subsidiary. PowerTransitions, owned by Switzerland-based Partners Group Holding, plans to turn the gas- and oil-fired plant into an “energy campus” serving data centers and other energy-intensive industries. The New York Public Service Commission also approved the deal Thursday, and PowerTransitions expects to close by year-end. The plant, which started operating in 1974, sits in NYISO’s Zone G near the Hudson Valley. Last month, PowerTransitions also closed on five New York gas plants totaling 323 MW, signaling a broader buildout strategy in the state.
Market Impact
FERC separately approved TransAlta Holding’s roughly $1 billion acquisition of two gas-fired plants near Denver, the 163-MW Mountain Peak and 157-MW Canyon Peak, from subsidiaries of Kindle Energy, which is 90% owned by Blackstone. Both plants operate under long-term tolling agreements, Mountain Peak with United Power and Canyon Peak with CORE Electric Cooperative. Mountain Peak has been running since September, and Canyon Peak is expected online before October.
TransAlta President and CEO Joel Hunter said the deal “establishes a strategic foothold in Colorado, a state we believe has accelerating growth potential,” in a June 3 press release. The plants are expected to generate about $33 million a year in cash flow that TransAlta plans to redeploy toward growth projects, including data center-related work in Centralia, Washington, and Alberta. TransAlta is also converting its coal-fired Centralia plant to gas under a deal with Puget Sound Energy, after the U.S. Department of Energy ordered the company to keep the plant running past its planned shutdown at the end of last year.
What It Means for Subcontractors
- Mechanical, electrical and controls contractors in the Denver metro area should watch for TransAlta’s post-closing scope of work at Mountain Peak and Canyon Peak, expected to close late this year, since tolling agreements with United Power and CORE Electric Cooperative point to sustained O&M contracting needs.
- Civil, electrical and data infrastructure trades in the Hudson Valley region should track PowerTransitions’ energy campus buildout at Roseton, which the company says will include new energy storage systems, once the Castleton deal closes by year-end.
- Firms with data center or energy storage experience in Washington state and Alberta should note TransAlta’s plan to redeploy the $33 million in annual cash flow from its Colorado plants toward those markets, including the Centralia coal-to-gas conversion tied to its Puget Sound Energy agreement.
- New York-based contractors should also factor in PowerTransitions’ broader acquisition pace, including the five gas plants totaling 323 MW it bought last month, as a sign of upcoming maintenance and upgrade packages across multiple sites.
