BP Wind affiliate seeks approval for sale of Indiana wind project

Fowler Ridge IV Wind Farm LLC applied Jan. 15 at the Federal Energy Regulatory Commission for approval of a transaction in which BP Wind Energy North America (BPWENA) will sell all of its ownership interests in Fowler Ridge IV to Pattern Renewables LP or a wholly owned subsidiary of Pattern Renewables.

Fowler Ridge IV is a direct, wholly owned subsidiary of BPWENA. It is developing a wind facility, with an expected capacity of about 150 MW, to be located in Benton and Tippecanoe counties, Ind. It is to be interconnected with the transmission system controlled by PJM Interconnection and owned by Indiana Michigan Power.

“However, because the generating facility is still in the development phase and has not yet been constructed, Fowler Ridge IV does not yet own any operating generation facilities.,” the application noted. “Accordingly, Fowler Ridge IV does not yet sell any power and, therefore, has not yet submitted a market-based rate tariff for filing with the Commission.”

Fowler Ridge IV intends to interconnect its generating project to the transmission system via a set of common facilities that currently serve as generator interconnection facilities for three wholly or partially owned subsidiaries of BPWENA, each of which owns and operates a wind facility located in the vicinity of the Fowler IV project. The subsidiaries are Fowler Ridge Wind Farm LLC, Fowler Ridge II Wind Farm LLC, and Fowler Ridge III Wind Farm LLC.

Each of these companies has a market-based rate wholesale power sales tariff on file with FERC, and each currently has an undivided ownership interest in the common facilities. Fowler Ridge IV will obtain an undivided ownership interest in the common facilities on the commissioning date of its generating project.

BPWENA is a direct wholly owned subsidiary of BP Alternative Energy North America, which is an indirect, wholly owned subsidiary of BP America, which in turn is an indirect, wholly owned subsidiary of BP p.l.c.

The project buyer, Pattern Renewables, is in the business of owning wind facilities through its subsidiaries. Pattern Energy Group LP owns all of the limited partnership interests in Pattern Renewables. Pattern is a fully integrated energy company that develops, constructs, owns, and operates renewable energy and transmission assets across the United States, Canada and Latin America. Its principle place of business is in San Francisco, Calif.

Fowler Ridge IV Wind Farm and Pattern Energy Group had applied on Dec. 26, 2013, at the Indiana Utility Regulatory Commission for approval of this same transaction. The Indiana commission, in a November 2007 order, declined jurisdiction over the project as a public utility and authorized Fowler Ridge to construct and operate the wind farm. 

“Phase IV of the Wind Farm is designed to serve the wholesale power market exclusively, and neither Pattern Development nor the Project Company intends to recover the costs of Phase IV from Indiana ratepayers through rate base, rate of return or comparable methods typically associated with retail public utility rates,” said the Dec. 26 application. “Neither Pattern Development nor the Project Company will have any franchise, service territory, or retail customers or make any retail sales, in Indiana or elsewhere.”

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.