1,000-MW Cricket Valley Project in New York to Enter Construction in December


Several parties now or prospectively involved in the 1,000-MW Cricket Valley Energy Center project applied Oct. 25 at the New York State Public Service Commission for approval of ownership changes that will aid the financing of this $1.5 billion project.
The applicants were AP Cricket Valley Holdings II Inc. (APCVHII), MC CVEC Project Holdings I LLC (MCCVEC), Ullico Infrastructure Cricket Valley Holdco LLC (UICVH), Kiwoom SPV Development Bank of Japan Inc. SPV (DBJ SPV), SeAH Resources & Investment Co. Ltd. (SeAH), Cricket Valley Energy Holdings II LLC (CVEH II), Cricket Valley Energy Center LLC (CVEC) and Cricket Valley Energy Partners LLC (CVEP).
They said that AP Cricket Valley Holdings I Inc. (APCVHI), APCVHII, and MCCVEC (called the “Current Membership”) are the current owners of Cricket Valley Energy Center LLC, the developer of a proposed 1,000-MW, gas-fired facility in Dover, New York.
The petitioners requested a ruling declaring that the New York commission need not review under Public Service Law (PSL) Section 70 the following transactions:
•A proposed transfer from MCCVEC of 100% of its membership interests in CVEP to APCVHII (the “APCVHII Transaction”);
•APCVHII’s proposed sale of 2.5% to 5.0% of the issued and outstanding membership interests in CVEP to UICVH (the “UICVH Transaction”);
•APCVHII’s proposed sale of 7.5% to 15.0% of the issued and outstanding membership interests in CVEP to DBJ SPV (the “DBJ Transaction”);
•APCVHII’s proposed sale of 3.0% to 6.0% of the issued and outstanding membership interests in CVEP to Kiwoom SPV (the “Kiwoom SPV Transaction”); and
•APCVHII’s proposed sale of 5.0% to 10.0% of the issued and outstanding membership interests in CVEP to SeAH or an affiliate of SeAH2 (the “SeAH Transaction”).
In the alternative, the petitioners request that the commission approve these transactions without modification or condition, pursuant to PSL Section 70 and any other statutory or regulatory provision deemed applicable. Petitioners also request that the commission declare that an intra-corporate restructuring, whereby CVEH II will be inserted between Cricket Valley Energy Holdings LLC (CVEH) and CVEP, is not a jurisdictional transfer and no approval is required under PSL Section 70 (the “Intra-Corporate Restructuring”).
Finally, the petitioners also request a declaratory ruling that neither UICVH nor DBJ SPV will become an electric corporation under the PSL as a result of the consummation of these transactions because they will not be able to influence the operations of any electric plant in New York and, therefore, it would not be in the public interest to regulate UICVH or DBJ SPV as an electric corporation.
Said the Oct. 25 application: "The Proposed Transactions are in the public interest because they will provide needed equity for the development of CVEC’s proposed approximately 1,000 MW electric generating facility in New York (the 'Facility'). No competitive issues are raised by the Proposed Transactions.
"The Petitioners have structured and are seeking commitments from equity sources and debt providers for a $1.5 billion financing of the Facility. The Petitioners anticipate a closing of the financing and commencement of construction of the Facility and a 14.5-mile transmission line to interconnect the Facility to the transmission system in December 2016. Financing commitments will expire if the financial closing is not achieved within limited time periods. Certain contract rights will terminate, permits will lapse, and construction costs will increase substantially if construction of the Facility is not commenced within specified time frames, thereby jeopardizing the financing and development of the Facility. Therefore, Petitioners request expedited review of this Petition and request Commission action on the Petition no later than the Commission’s December 15, 2016 session."
The commission has granted CVEC a Certificate of Public Convenience and Necessity for the construction of a combined cycle, natural gas-powered approximately 1,000-MW facility on an inactive industrial site located in the Town of Dover, Dutchess County, New York. CVEC is lightly regulated by the commission.
CVEC currently has three members: APCVHI holds a 42.84% interest; APCVHII holds a 41.78% interest; and MCCVEC holds a 15.38% interest.
•APCVHI is wholly owned by J Cricket Holdings LLC, part of a joint venture by Chubu Electric Power Co. Inc. and Tokyo Electric Power Co. Inc.
•MCCVEC is indirectly wholly owned by Marubeni Corp (Japan).
•APCVHII is wholly owned by AP Energy Holdings Inc., which is wholly owned by APNA Holdings GmbH. APNA is wholly owned by Advanced Power AG.
On the buy side of these dealings:
•DBJ SPV is a to-be-formed special purpose entity that will be a wholly owned subsidiary of the Development Bank of Japan Inc.
•Kiwoom SPV is a to-be-formed special purpose entity that will be directly wholly owned by an investment trust in Korea.
•SeAH is based in South Korea and is engaged in investment and new business development.

This article was republished with permission from Generation Hub.

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