Catalina Solar Lessee LLC on July 24 submitted for filing at the Federal Energy Regulatory Commission a certificate of concurrence with respect to a Shared Transmission Facilities Agreement (SFA) for its 110-MW solar project in California.
Catalina Solar Lessee requested that the commission accept this certificate of concurrence effective on the date of consummation of a two-step structured lease financing transaction.
The SFA, designated as Pacific Wind Lessee LLC Rate Schedule FERC No. 2, sets forth the terms and conditions pursuant to which the parties to the SFA share in the costs of and co-own certain portions of the infrastructure required to install and operate their respective segments of interconnection facilities as described in the SFA.
Pacific Wind Lessee LLC filed the SFA for commission acceptance in another docket. The commission accepted the SFA and the certificate of concurrence for filing, effective Nov. 15, 2012 as requested by Pacific Wind Lessee and Catalina Solar.
Effective as of the date of consummation of the Sale/Leaseback Transaction, Catalina Solar Lessee will assume certain responsibilities currently undertaken by Catalina Solar. Consistent with that transfer of responsibilities, Catalina Solar is filing a notice of cancellation of its own certificate of concurrence relating to the SFA contemporaneously with this filing by Catalina Solar Lessee of a certificate of concurrence relating to the SFA.
Catalina Solar currently has market-based rate authority and a commission-approved market-based rate tariff. Catalina Solar wholly owns a 110-MW solar-powered facility located in Kern County, Calif. All of the output of the facility, which is due for startup this summer, will be sold under a long-term power purchase agreement to San Diego Gas & Electric (SDG&E).
On July 16, Catalina Solar filed a notice of cancellation of its market-based rate tariff and a petition for issuance of a declaratory order by the commission disclaiming jurisdiction over Catalina Solar under Section 201 of the Federal Power Act.
As described in those filings, Catalina Solar requested that the cancellation of its market-based rate tariff and the disclaimer of jurisdiction be made effective as of the date of consummation of the Sale/Leaseback Transaction. Upon the consummation of the transaction, during the term of the lease, Catalina Solar Lessee will operate and control the facility and will assume the responsibility to sell the facility’s full output to SDG&E under the long-term power purchase agreement. Upon the lease commencement date, Catalina Solar’s market-based rate tariff will be cancelled, and Catalina Solar will no longer be a public utility and will be only a passive owner and lessor of the facility.
Catalina Solar is indirectly wholly owned by EDF Renewable Energy.