Renewable Power Producer To Acquire Retail Supplier
September 1, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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UP Power Marketing, LLC ('UPPM' or the 'Applicant'), which had served as a retail electric supplier in Michigan, filed an application at FERC for the disposition of UPPM’s jurisdictional facilities in connection with the sale
of the ownership interests of UPPM (as described further below, the 'Proposed Transaction').
a result of the Proposed Transaction, L’Anse Warden Electric Company, LLC ('LWEC' or
'Buyer') will directly own 100% of the Membership Interests in UPPM. LWEC is a unit of Convergen Energy, a renewable power and fuels producer
UPPM is a limited liability company organized under the laws of Delaware with its
principal place of business in Michigan. UPPM is a wholly owned direct subsidiary of PM Power
Group, Inc. ('PM Power Group'), a Delaware corporation. PM Power Group in turn is a wholly
owned subsidiary of PPS USA Holdings, Inc. ('PPS USA Holdings'), a Michigan corporation,
which in turn is a wholly owned subsidiary of PM Michigan Inc. ('PM Michigan'), also a
Michigan corporation (collectively, PM Power Group, PPS USA Holdings, and PM Michigan are
referred to as the 'Current Owners').
UPPM is a wholesale power marketer and a licensed Alternative Electric Supplier in the
State of Michigan. UPPM does not own or control any electric generation, transmission, or
distribution facilities. FERC has authorized UPPM to sell energy, capacity, and
ancillary services at wholesale at market-based rates, and its jurisdictional facilities are limited to
its market-based rate tariff and associated books and records. UPPM purchases power from Buyer,
and resells it to Certainteed Ceilings Corporation ('Certainteed') pursuant to a certain electrical
supply agreement (the 'Certainteed Agreement').
PM Power Group also owns 100% of the equity interests of White Pine Electric Power
L.L.C. ('White Pine'). White Pine is a Delaware limited liability company that owns and once
operated a 60 MW gas-fired electric generating facility located in White Pine, Michigan ('White
Pine Facility') which is interconnected to the American Transmission Company in the
Midcontinent Independent System Operator, Inc. ('MISO') balancing authority area ('BAA').
Prior to its retirement in 2016, the White Pine Facility consisted of three generating units with an
aggregate nameplate capacity of 60 MW; however, due to boiler capacity limitations, the power
that the generating units were capable of delivering to the interstate grid was 40 MW. White Pine
is an exempt wholesale generator and the Commission had authorized White Pine to sell energy
and capacity at wholesale at market-based rates. The White Pine Facility was retired from service
in 2015 (Unit No. 2) and 2016 (Unit No. 1) and is no longer generating power in the wholesale
Following consummation of the Proposed Transaction, UPPM will no longer be affiliated
with White Pine or PM Power Group. Neither UPPM nor any affiliate of UPPM owns or controls
any generation facilities, aside from White Pine, or transmission facilities, other than limited
facilities used solely for the interconnection of generating facilities to the transmission grid.
Neither UPPM nor any affiliates of UPPM own or control any other inputs to electric power
production as defined in section 35.36 of FERC's regulations that could be used to
prevent competitors from entering any BAA. Further, neither UPPM nor any affiliates of UPPM
is a public utility that has a franchised electric service territory or captive customers (as that term
is defined under Order No. 697).
LWEC owns and operates a 17.7 MW qualifying small power production facility in
L’Anse, Michigan. The wholesale output of the facility is sold into the markets administered by
MISO and settled with DTE Electric Company. UPPM and LWEC are parties to an Alternative
Electric Supplier Services Agreement dated August 22, 2014 (the 'AES Services Agreement')
related primarily to the Certainteed Agreement. Buyer’s prior owner and PM Power Group’s prior
owner were affiliated entities and shared certain administrative and management services which
Seller continued to perform for LWEC pursuant to a Services Agreement dated August 22, 2014
until its termination effective July 2, 2020 (the 'Services Contract'). The services not taken
inhouse are now being provided to LWEC by an independent third-party.
LWEC is a wholly owned direct subsidiary of Convergen Energy LLC, which in turn is a
wholly owned direct subsidiary of Convergen Energy Holdings LLC, which in turn is a wholly
owned direct subsidiary of First North American Holdings II, Inc. First North American Holdings
II, Inc. is owned by Attica Two Limited, which in turn is a wholly owned direct subsidiary of
Arabella Group Limited, which in turn is 87.15% owned by Libra Holdings Limited. The
remaining 12.85% minority owner of Arabella Group Limited is Thesis Investments S.A. Libra
Holdings Limited is owned by the Logothetis family.