FERC okays sale of Palouse Wind to financial investor

The Federal Energy Regulatory Commission on Dec. 4 approved the sale of Palouse Wind LLC, which owns a 105-MW wind farm in the state of Washington.

On Oct. 10, Palouse Wind filed an application requesting commission authorization for the disposition of jurisdictional facilities. First Wind Pacific Holdings LLC will sell 100% of the undivided membership interests in Palouse to Corridor Energy LLC; and then Corridor will issue to First Wind Cyrus Portfolio LLC, or an affiliate thereof, a 10% share of its equity.

Palouse, an exempt wholesale generator with market-based rate authority, owns and operates a 105-MW wind facility located in Whitman County, Washington, within the Avista Corp. balancing authority area (Avista BAA). Output from the facility is sold under a long-term power purchase agreement.

Palouse is a direct wholly-owned subsidiary of Palouse Wind Holdings, LLC.  First Wind Palouse Portfolio LLC owns and controls 100% of Class A interests, which are managing, in Palouse Holdings. Palouse Portfolio is a direct wholly-owned subsidiary of First Wind Pacific, which, in turn, is indirectly wholly-owned by First Wind Holdings LLC, an independent North American energy company focused on the development, ownership, and operation of wind energy generating projects. D.E. Shaw MWP Acquisition Holdings LLC and Madison Dearborn Capital Partners IV LP each own approximately 46% of the voting interests in First Wind Holdings.

Corridor will be created as an indirect subsidiary of IIF US Holding 2 LP, an infrastructure investment fund. IFF’s ultimate upstream owners are three individuals who hold no investment interest in any electric generation or transmission facilities within the Avista BAA. As a result of the proposed transaction, Palouse will become a wholly-owned indirect subsidiary of Corridor, which, in turn, will be indirectly owned 90% by IIF.

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.