The Federal Energy Regulatory Commission has approved NRG REMA LLC's application to sell its tenant-in-common interests in two coal- and oil-fired power plants in Pennsylvania.
NRG REMA originally filed an application on Oct. 9 with the commission to authorize the sale to two newly formed entities held by investors through pass-through certificates, according to a Dec. 13 order.
Under the transaction, the NRG Energy Inc. subsidiary will sell its 16.45% tenant-in-common, or TIC, interest in the 1,711-MW Conemaugh power plant to Conemaugh Power Pass-Through Holders LLC and a 16.67% TIC interest in the 1,711-MW Keystone facility to Keystone Power Pass-Through Holders LLC.
NRG REMA leases the TIC interests in both power plants. The company is selling its lease agreements to settle debt as part of its agreement with creditors for reorganization under Chapter 11. NRG REMA's pass-through certificate holders intend to reorganize the company's lease agreements that include $209.4 million worth of outstanding series C pass-through certificates, due 2026.
The company's creditors and pass-through certificate holders consented to support NRG REMA and its parent company GenOn Energy Inc.'s reorganization in October. Upon consummation of the reorganization, GenOn and NRG REMA will no longer be associated with NRG Energy but the pass-through certificate holders and other creditors will hold these entities and their subsidiaries.
The holders of the pass-through certificate interests in Conemaugh Power Pass-Through and Keystone Power Pass-Through will receive $77.5 million upon the successful reorganization and successful transfer of stake.
Four other companies also own stakes in Keystone facility and five more companies own stakes in Conemaugh plant. The generating stations supply their output to PJM Interconnection market. (FERC docket EC19-6)