FERC Approves Sale of Mid-Atlantic Retail Provider to Start-up LVI Power

FERC has approved a transaction under which start-up retail supplier LVI Power, LLC will acquire Castlebridge Energy Group, LLC.

As previously reported, Castlebridge Energy Group, LLC (CEG) had sought FERC authorization for the transaction under which LVI Power, LLC (LVI) will acquire 100% of CEG's outstanding membership interests, thereby transferring control over CEG and its assets subject to the jurisdiction of the Commission to LVI

Such assets include CEG's authorization to make sales of electric power, energy and ancillary services at wholesale pursuant to FPA Section 205 as well as certain wholesale electric contracts entered into pursuant to that market-based rate authorization.

In October, Washington Gas Energy Services announced that it had acquired "all" of Castlebridge Energy Group's retail customers, and Castlebridge did not indicate in the FERC application for the LVI transaction that it was currently serving any customers at retail.

CEG's voting membership interests are held by three individuals: Mark S. Schroeder (33.3%), H. Bertram Wilson (33.3%), and Kevin S. Kahoe (33.3%). A fourth individual, Andy Lecce, holds a 10%, non-voting membership interest in CEG. CEG holds retail electric and natural gas supplier licenses in Maryland, and retail electric supplier licenses in Pennsylvania and the District of Columbia.

LVI is owned by two individuals, Eliot H. Powell and Jerome R. Sanders, each owning a 50% share in LVI. LVI's primary business activity consists of retail electric supplier operations in Maryland and Pennsylvania.

Castlebridge said that the transaction is valued at less than $10 million and involves the transfer of ownership of the membership interests in CEG, whose only jurisdictional assets are its FPA Section 205 market based rate authorization and any wholesale electric contracts in existence as of the closing of the proposed transaction.

CEG operations are confined to the footprint of PJM Interconnection LLC (PJM), and, in 2013, CEG's sales in the PJM market through October 31, 2013 were 200,844 MWh.

LVI is a small, startup electricity supplier focused on retail markets. Like CEG, LVI's operations are limited to the PJM footprint. LVI is a new entrant into the PJM market, having become a member in the spring of 2013. For 2013, LVI's sales in the PJM market were approximately 417 MWh, with total sales revenues of approximately $34,700.

LVI also owns 100% of LVI Power Marketing LLC (LVI-PM) and, through LVI-PM, LVI owns 100% of LVI-NJ, LLC (LVI-NJ), each a Delaware limited liability company. LVI-PM and LVI-NJ have been formed in anticipation of providing marketing services to energy brokers and agents upon LVI's approval as an energy supplier in various states within the PJM footprint. As of December 2013, neither LVI-PM nor LVI-NJ had any current, active operations.

Docket EC14-40