FERC approves shared power line for Oklahoma wind projects

The Federal Energy Regulatory Commission on June 24 accepted the filing of a Shared Facilities Agreement that allows other parties to add 700-MW of new wind generation to the current interconnect for the Canadian Hills Wind LLC facility.

In April, Canadian Hills Wind filed with the commission a Co-Tenancy and Shared Facilities Agreement between itself; Kingfisher Transmission LLC, CH Wind East Transmission LLC, and APFAI LLC (collectively called the Apex Affiliates); and Atlantic Power Services LLC, as manager. The Apex Affiliates are subsidiaries of Apex Wind Energy Holdings LLC

Canadian Hills owns and operates a 298.45-MW wind facility located in Canadian County, Okla., which is interconnected with the Oklahoma Gas and Electric transmission system by a 25-mile, 345 kV generator tie-line, with about 1,000 MW of capacity. Canadian Hills told FERC that Atlantic Power will provide operation and maintenance service for the Shared Facilities under an operation and maintenance agreement.

Canadian Hills said that the Apex Affiliates, directly or through their affiliates, are developing wind facilities in the vicinity of Canadian Hills’ facility with a combined capacity of up to 700 MW, and have an interest in utilizing the excess capacity on the Shared Facilities to interconnect their planned wind facilities to the bulk-power system.

Canadian Hills said that on April 8 it entered into an Option and Asset Purchase Agreement which granted each of the Apex Affiliates an option to acquire an undivided ownership interest in the Shared Facilities, provided the option is exercised within five years from the date of the Purchase Agreement and provided that at least one of the three Apex Affiliates has exercised its option within two years and all three Apex Affiliates exercise their option within five years.

Canadian Hills added that once the Apex Affiliates exercise their respective options and take their respective ownership interest in the Shared Facilities, they will jointly own the Shared Facilities as tenants in common with Canadian Hills under the Shared Facilities Agreement, and will have the non-exclusive right to use their respective shares of the Shared Facilities for the purpose of delivering power from their respective projects to the point of interconnection with Oklahoma Gas and Electric’s transmission system. Canadian Hills said that if all options are exercised, it will retain a 30% undivided interest in the Shared Facilities and be entitled at all times to no less than 300 MW of the transmission capacity of the Shared Facilities.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.