The Federal Energy Regulatory Commission on June 2 approved the sale by Atlantic Power of several existing power plants to a ‘yieldo,” Terraform Power Inc.
On April 14, there was an application from Meadow Creek Project Co. LLC, Goshen Phase II LLC, Wolverine Creek Goshen Interconnection LLC, Canadian Hills Wind LLC, Rockland Wind Farm LLC, Burley Butte Wind Park LLC, Golden Valley Wind Park LLC, Milner Dam Wind Park LLC, Oregon Trail Wind Park LLC, Pilgrim Stage Station Wind Park LLC, Thousand Springs Wind Park LLC, Tuana Gulch Wind Park LLC, Camp Reed Wind Park LLC, Payne’s Ferry Wind Park LLC, Salmon Falls Wind Park LLC and Yahoo Creek Wind Park LLC. These companies are controlled by Atlantic Power. The applicant was TerraForm AP Acquisition Holdings LLC. They wanted approval of a transaction in which Atlantic Power will indirectly dispose of, and Terraform Acquisition will acquire, these project companies’ jurisdictional facilities.
Each of the Atlantic Power companies is an exempt wholesale generator (EWG) or qualifying small power production facility (QF) interconnected to either the PacifiCorp East balancing authority area, the Oklahoma Gas and Electric balancing authority area within the Southwest Power Pool (SPP), or the Idaho Power balancing authority area.
- Meadow Creek owns and operates an approximately 119.7-MW wind facility and Goshen II owns and operates a 124.5-MW wind facility project each located in Bonneville County, Idaho, and each is interconnected with the transmission system of PacifiCorp in the PacifiCorp East balancing authority area. All of the electricity produced by the Meadow Creek Project is sold to PacifiCorp pursuant to two long-term power purchase agreements. The output of the Goshen Phase II Project is sold on a long-term basis to Southern California Edison.
- Canadian Hills owns and operates an approximately 298.45-MW wind project in Canadian County, Oklahoma. The Canadian Hills Facility is interconnected with the transmission system of Oklahoma Gas and Electric and located within the Oklahoma Gas and Electric balancing authority area within SPP. The entire output of the Canadian Hills Facility is committed under long-term power purchase agreements with the following three electric utilities: Southwestern Electric Power (201.25 MW); Oklahoma Municipal Power Authority (49.2 MW); and Grand River Dam Authority (48 MW).
- Rockland, owns a 79.86-MW wind facility near American Falls, Idaho. The Rockland Project is located in the Idaho Power Company balancing authority area and is interconnected with Idaho Power’s transmission system. The output of the Rockland Project is sold to Idaho Power under a long-term power purchase agreement.
- Each of Burley Butte (12 MW), Golden Valley (12 MW), Milner Dam (19.5 MW), Oregon Trail (13.5 MW), Pilgrim Stage (10.5 MW), Thousand Springs (12 MW), Tuana Gulch (10.5 MW), Camp Reed (22.5 MW), Payne’s Ferry (12 MW), Salmon Falls (12 MW), and Yahoo Creek (12 MW) are QFs interconnected to the Idaho Power balancing authority area.
The newly-created TerraForm Acquisition does not currently own or control any electric generation or transmission facilities. TerraForm Acquisition currently is a wholly owned subsidiary of TerraForm Power LLC. TerraForm indirectly owns a portfolio of utility scale wind and solar projects and behind-the-meter solar projects. TerraForm Power Inc. holds 100% of the voting interests in and is the sole managing member of TerraForm. Through a wholly-owned subsidiary, SunEdison Inc. owns all of the Class B common stock of TerraForm Power Inc., which confers on SunEdison Inc., an approximately 91% voting interest in TerraForm Power Inc. SunEdison created TerraForm Power as a ‘yieldco’ to take on from it established power plants with long-term power sales contracts, with TerraForm Power, as in this case, also able to go outside of SunEdison to acquire facilities.
Atlantic Power (NYSE: AT) (TSX: ATP) had announced April 1 an agreement to sell these wind generation projects to TerraForm Power (NASDAQ: TERP) for cash proceeds of approximately $350 million, subject to certain adjustments.