An indirect subsidiary of General Electric Co. is seeking the Federal Energy Regulatory Commission's approval to sell its 10.65% ownership interest in Homer City Generation LP to affiliates of Knighthead Capital Management LLC.
The buyers collectively hold a 7.40% interest in Homer City Generation, and after the deal, their interest will increase to 18.05%. Upon deal close, Homer City Generation will no longer be affiliated with GE, according to the FERC application.
Homer City Generation owns and operates the 1,884-MW Homer City coal-fired power plant in Pennsylvania. It is interconnected with both the transmission system owned by Pennsylvania Electric Co., which is operated by PJM Interconnection, and the transmission system owned by New York State Electric & Gas Corp., which is operated by the New York ISO.
The commission was asked to approve the deal by Jan. 7, 2019. (FERC docket EC19-28)
In April, Homer City Generation announced that it had completed its reorganization, allowing the company to eliminate more than $600 million in principal and accrued interest from its balance sheet and to pay in full all trade creditors and other general unsecured creditors. GE has been divesting many of its businesses since its new CEO took over with a pledge to deleverage the industrial conglomerate.