The Federal Energy Regulatory Commission on June 30 approved a “yieldco” transaction involving SunEdison LLC and a solar facility in California.
On May 23, SunEdison and Imperial Valley Solar I LLC asked for commission authorization for a transaction whereby ownership and control of Imperial Valley will be transferred from Silver Ridge Power LLC to a new entity, TerraForm Power Inc. (called a “Yieldco”) that will be majority owned by SunEdison.
At the time of the proposed transaction Silver Ridge will be owned in equal shares by SunEdison and an affiliate of Riverstone Holdings LLC. As part of the proposed transaction, Riverstone will acquire and hold a non-controlling, minority interest in Yieldco.
Imperial Valley, an exempt wholesale generator with market-based rate authority, owns and operates the Imperial Valley generation facility, an approximately 200-MW solar facility located in the balancing authority area (BAA) of the California Independent System Operator (CAISO).
Silver Ridge, a company established to develop, own and operate utility-scale solar power plants, owns 100% of the voting equity interest in Imperial Valley. Also within the CAISO BAA, Silver Ridge owns a minority interest in the approximately 150-MW CSOLAR IV West LLC project, as well as owns or controls sites for generation capacity development.
SunEdison LLC is a wholly-owned subsidiary of SunEdison Inc., a developer and seller of photovoltaic energy solutions and is engaged in the development, manufacture and sale of silicon wafers to the semiconductor industry. SunEdison owns approximately 156 MW of solar capacity within the CAISO BAA. Output from SunEdison’s solar projects is committed under long-term power purchase or other offtake agreements.
SunEdison will have a majority indirect ownership and control of Imperial Valley and the Riverstone affiliate will hold a maximum 9.5% indirect interest in Imperial Valley, and other persons will hold no more than 5% indirect interest each in Imperial Valley.