FERC okays sale of passive interests in Kingfisher wind project

The Federal Energy Regulatory Commission on July 22 approved an ownership change related to a 298-MW, in-development wind project in Oklahoma.

On April 16, FR Kingfisher Holdings LLC, FR Kingfisher Holdings II LLC and MidAmerican Wind Tax Equity Holdings LLC filed an application for commission authorization for the acquisition by MidAmerican Wind Tax Equity of passive Class A tax equity interests in FR Kingfisher II. FR Kingfisher II owns 100% of the membership interests in Kingfisher Wind LLC and will issue to MidAmerican Wind Tax Equity the Class A membership interests in Kingfisher II in exchange for MidAmerican Wind Tax Equity’s contribution of funds for the construction of a generating facility located in Oklahoma and owned and operated by Kingfisher Wind.

Although applicants state that the transaction may not require commission authorization under Federal Power Act section 203, they nevertheless asked the commission to authorize the application. “This order authorizes the Transaction without making any determination of jurisdiction,” said the July 22 decision.

Kingfisher Wind is constructing, and will own and operate, a 298-MW wind facility located in Canadian and Kingfisher counties, Oklahoma, within the Southwest Power Pool market. The Kingfisher Wind Facility is expected to begin generating test power during the third quarter of 2015 and is expected to start commercial operation during the fourth quarter of 2015.

Pursuant to an option and asset purchase agreement, Kingfisher Wind has an option to acquire an undivided 30% interest as a tenant in common in an existing 25-mile, 345-kV generator tie-line, related equipment, and facilities that interconnect the Kingfisher Wind Facility with Oklahoma Gas and Electric’s (OG&E) 345-kV Cimarron substation.

Applicants state that the generator tie-line has been energized and, in accordance with the Option Agreement, Kingfisher Wind has exercised its option to acquire an interest in the Shared Facilities. MidAmerican Wind Tax Equity’s obligation to close on the transaction and fund construction of the Kingfisher Wind Facility is subject to a number of conditions, including the requirements that Kingfisher Wind acquires the 30% undivided interest in the Shared Facilities pursuant to the Option Agreement and obtains market-based rate authorization from the commission.

FR Kingfisher and FR Kingfisher II are indirect subsidiaries of First Reserve Energy Infrastructure Fund II LP (FREIF).  They are affiliated with First Reserve, a global private equity firm focused on the energy industry.

Within the SPP market, affiliates include Lea Power Partners LLC, which owns and operates the 674 MW Hobbs Generating Station, and Borger Energy Associates LP, which owns and operates the 243.9 MW Blackhawk Power Station. All of the electric output produced by the Hobbs Generating Station and by the Blackhawk Power Station is sold to Southwestern Public Service under long-term contracts.

MidAmerican Wind Tax Equity is an indirect, wholly owned subsidiary of BHE Wind LLC, which, in turn, is an indirect wholly owned subsidiary of BHE Renewables LLC. BHE Renewables is a direct, wholly owned subsidiary of Berkshire Hathaway Energy Co., part of Berkshire Hathaway Inc.

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.