ALLETE, EDF Renewable Energy seek approval for wind project sale

Chanarambie Power Partners LLC, an indirect, wholly owned subsidiary of EDF Renewable Energy (EDF-RE), and ALLETE Clean Energy filed a Jan. 14 joint application with the Federal Energy Regulatory Commission requesting authorization for an upstream disposition of all the jurisdictional facilities of Chanarambie.

This will result from the acquisition by ACE Mid-West Holdings LLC, a wholly owned subsidiary of ACE, of 100% of the membership interests in Northern Wind Energy LLC, the immediate upstream parent of Chanarambie and an indirect subsidiary of EDF-RE. The applicants requested issuance of an order granting this application on or before Feb. 17 in order to enable the proposed transaction to be consummated on or around March 1.

ACE is a wholly owned subsidiary of utility holding company ALLETE Inc. (NYSE: ALE). ACE was formed for the purpose of, among other things, owning or developing renewable generation projects throughout North America. ACE, through its indirect, wholly owned subsidiary ACE Mid-West, currently owns three wind-powered exempt wholesale generators (EWGs) in the Midcontinent Independent System Operator Balancing Authority Area (BAA) with a combined capacity of 292 MW and one wind-powered EWG with a capacity of approximately 50 MW in the Bonneville Power Administration BAA.

Chanarambie is an exempt wholesale generator with market-based rate authorization that owns and operates an approximately 85.5-MW wind facility in Murray County, Minnesota. The Chanarambie Facility is interconnected with Northern States Power (NSP) in the MISO BAA. The entire capacity and energy output of the Chanarambie Facility is sold at wholesale to NSP under a long-term Power Purchase Agreement (PPA).

EDF-RE will sell 100% of the membership interests in Northern Wind to ACE Mid-West, a wholly-owned subsidiary of ACE, for a purchase price in excess of $10m. Northern Wind owns all the membership interests in Chanarambie and indirectly owns all of the membership interests in eight QF project companies also located in the MISO BAA. The total generation capacity of the facilities owned by these nine project companies is 97.5 MW.

Those eight QFs, which are technically not covered by commission authority under the Jan 14 application, are: Buffalo Ridge Wind Farm LLC, Moulton Heights Wind Power Project LLC, Muncie Power Partners LLC, North Ridge Wind Farm LLC, Vandy South Project LLC, Viking Wind Farm LLC, Vindy Power Partners LLC, and Wilson-West Wind Farm LLC. They each own QFs that are each 1.5 MW in size and located in Minnesota. All of these QFs are interconnected with NSP and the capacity from each is fully committed to NSP under long-term PPAs. 

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.