ArcLight Capital Partners LLC has retained Morgan Stanley to advise on the sale of the Bayonne Energy Center, a 512 megawatt dual-fuel power plant located in New Jersey. Teasers were sent out earlier this month and indicative bids have not yet been taken. The auction will be conducted in a typical two-phase process. ArcLight and Morgan Stanley will work to finalize the purchase and sale agreement with the selected buyer and hope to complete a deal by year-end, with the close expected in the first quarter of 2015. The New York City region has a high level of energy demand so the process is expected to be competitive. The sale price is estimated to be in the $500 million to $1 billion range. Energy Investors Funds, a private equity firm with offices in Boston, New York and San Francisco, and Tenaska Inc., an Omaha, Neb.-based independent power producer, are logical buyers as both are actively looking for power plant buys.