Retail Supplier Parent Commits To Divesting Nearly 400 MW Of Generation

September 19, 2023

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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In a FERC proceeding reviewing the acquisition of Energy Harbor by Vistra (the Applicants), Vistra has committed to divesting nearly 400 MW of generation currently owned by Vistra in the ATSI zone

The Applicants said that the proposed transaction passes all relevant market power screens and competitive tests used by FERC

"However, in an effort to put to rest any potential arguments to the contrary and provide for a quicker review process to allow Applicants to close on the Proposed Transaction as soon as possible, including for customer, employee and investor certainty, Applicants are herein also including an affirmative commitment to divest the only generation facilities currently owned by Vistra in ATSI -- the Richland and Stryker facilities. These are the only generation facilities that could even arguably be considered as located in an overlapping 'submarket' in PJM with the Energy Harbor facilities. In addition ... Applicants will commit to offer the Richland and Stryker facilities at a level no greater than their cost-based offers, as determined pursuant to PJM rules, pending the completion of such divestiture," the Applicants said

The Richland-Stryker generating facilities consist of an approximately 369 MW natural gas- and oil-fired generating facility in Defiance, Ohio (Richland), and an approximately 17 MW (summer rating) oil-fired generating facility located near Stryker, Ohio (collectively, 'Richland-Stryker').

"Vistra will divest Richland-Stryker in an expeditious manner. Vistra commits to enter into a definitive agreement to divest Richland-Stryker no later than 180 days after the consummation of the Proposed Transaction," the Applicants said

"Vistra will further commit to close on the sale of Richland-Stryker no later than 30 days after the receipt of all regulatory approvals, including the receipt of this Commission’s approval under Section 203 of the FPA," the Applicants said

"Vistra has not yet identified a buyer for Richland-Stryker. The Commission will have the opportunity to consider the competitive effects of the proposed divestiture based on the specific facts regarding the buyer when the application under Section 203 of the FPA is filed seeking Commission approval of the divestiture," the Applicants said

"Richland-Stryker is located in ATSI, which is the only locational deliverability area ('LDA') and only transmission zone in which both Vistra and Energy Harbor own generation. Implementation of the [divestiture] Plan will therefore negate any possible market power concerns related to Applicants’ overlapping generation," the Applicants said

Docket No. EC23-74-000

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