Chestnut Flats Wind LLC filed a notice of cancellation on Oct. 8 with the Federal Energy Regulatory Commission of its Market-Based Rate Tariff and surrendered its Market-Based Rate Authorization, to be effective on Oct. 9.
Chestnut Flats Wind received market-based rate authorization in October 2010. It is the owner-lessor of a 38-MW wind facility in Blair and Cambria counties, Pa. On July 16, it received commission authorization to implement structured lease financing for this facility. Under the authorized sale/leaseback transaction, 100% of the ownership interests in Chestnut Flats Wind were transferred to Metropolitan Life Insurance or a trust in which MetLife or its wholly-owned subsidiaries own the beneficial interests.
As part of the sale/leaseback transaction, Chestnut Flats Wind has leased the facility to Chestnut Flats Lessee LLC, which now operates and controls the facility and sells the facility’s full output under its own market-based rate tariff. Chestnut Flats Wind is cancelling its tariff so that it will no longer be a public utility and will be only a passive owner and lessor of the facility.
This facility is Chestnut Flats Wind’s only generation asset, and the power purchase agreement that has been assumed by the facility lessee constitutes Chestnut Flats Wind’s only contractual arrangement regarding sales of electricity. Therefore, no purchasers will be affected by the tariff’s cancellation.