PJM Market Monitor Raises Concerns Over Proposed Acquisition of Linden VFT

Strategic Insights -

The Independent Market Monitor for PJM Interconnection, LLC has submitted comments to the Federal Energy Regulatory Commission (FERC) raising concerns over a proposed acquisition of Linden VFT, LLC by Riverview Power Holdings LLC. The acquisition, if approved, would result in Riverview Power Holdings, a company with significant generation and trading interests, acquiring 100% ownership of Linden VFT. The Market Monitor has identified potential issues with market power and recommends conditions to ensure that the acquisition does not harm competition.

The Market Monitor notes that the current owner of Linden VFT, GE Verona, has conducted auctions to assign transmission rights and has ensured that no Linden affiliates have participated in these auctions. In contrast, Riverview Power Holdings, through its parent company Castleton Commodities International, LLC, would have significant generation and trading interests in New York, PJM, and New England. The Market Monitor argues that Riverview Power Holdings may have an incentive to exercise market power, which could negatively impact competition.

To address these concerns, the Market Monitor recommends that Riverview Power Holdings be required to follow the same conditions applied to the current owner, including the requirement that transmission rights be granted through an open, fair, transparent, and nondiscriminatory process. The Market Monitor also suggests that Riverview Power Holdings provide proposed rules to prevent affiliates from being granted preferential treatment or exercising market power.

Key Takeaways:

  • The Independent Market Monitor for PJM Interconnection, LLC has submitted comments to FERC raising concerns over a proposed acquisition of Linden VFT, LLC by Riverview Power Holdings LLC.
  • The acquisition, if approved, would result in Riverview Power Holdings acquiring 100% ownership of Linden VFT, a company with significant generation and trading interests.
  • The Market Monitor has identified potential issues with market power and recommends conditions to ensure that the acquisition does not harm competition, including:

+ Ensuring that transmission rights be granted through an open, fair, transparent, and nondiscriminatory process.

+ Preventing affiliates from being granted preferential treatment or exercising market power.

  • Riverview Power Holdings should be required to provide proposed rules to address these concerns.
  • The Market Monitor believes that the acquisition should not be approved without addressing the market power issue and including additional conditions.

Statistics:

  • Riverview Power Holdings owns 1,330.2 MW of generation in New York, 189.9 MW of generation in PJM, and 674 MW of generation in New England.
  • Riverview Power Holdings participates in energy and commodities trading.
  • The proposed acquisition would result in a company with significant generation and trading interests acquiring 100% ownership of Linden VFT.
  • The Market Monitor recommends that transmission rights be granted through an open, fair, transparent, and nondiscriminatory process.

Sources:

  • 16 U.S.C. § 824b
  • 18 CFR § 385.211 (2025)
  • Linden VFT, LLC, 119 FERC P 61,066 at P 8 (2007)
  • Allocation of Capacity on New Merchant Transmission Projects and New Cost-Based, Participant-Funded Transmission Projects; Priority Rights to New Participant-Funded Transmission, Docket Nos. AD12-9-000 & AD11-11-000, 78 Fed. Reg. 5268 at para. 30 (January 25, 2013)