Buckeye Wind Energy seeks FERC okay on passive investment in Kansas project

Buckeye Wind Energy LLC, which has a wind project in Kansas, on Sept. 28 applied with the Federal Energy Regulatory Commission for approval of a change in its upstream ownership.

Under this deal, EFS Renewables Holdings LLC (EFSR) and JPM Capital Corp. (JPMCC) would acquire the passive, non-controlling Class A membership interests in Buckeye Wind Energy Holdings LLC (Buckeye Holdings), which directly owns all of the membership interests in Buckeye Wind Energy LLC, and Buckeye Wind Energy Class B Holdings LLC (Class B Holdings) would exchange or convert its existing membership interests in Buckeye Holdings to Class B membership interests and will be the managing member of Buckeye Holdings (this is called the “EFSR/JPMCC Transaction”).

Also, HA INV Buckeye LLC (HA INV) would acquire the passive, non-controlling Class A membership interests in Class B Holdings, which indirectly owns all of the controlling membership interests in the applicant, and Invenergy Wind Global LLC (IWG) would exchange or convert its existing membership interests in Class B Holdings to Class B membership interests and will be the managing member of Class B Holdings (this is called the “HA INV Transaction”). Closing on the HA INV Transaction will occur around the same time, or shortly after, closing on the EFSR/JPMCC Transaction.

The company asked for a FERC decision by Oct. 28 to accommodate closing of the transactions as soon as possible thereafter

Buckeye owns and operates an up to 200.48 MW (nameplate) wind project that will be located near Ellis County, Kansas. Through interconnection facilities in which Buckeye owns interests, the Buckeye Project is interconnected with the transmission system owned by Midwest Energy, which is operated by the Southwest Power Pool. Buckeye will sell electric energy, capacity and/or ancillary services from the Buckeye Project at wholesale. The commission has granted Buckeye market-based rate authority. Buckeye is an EWG. For purposes of the commission’s review of the transactions, the relevant geographic market is the Southwest Power Pool.

The applicant is a direct, wholly-owned subsidiary of Buckeye Holdings. Currently, Class B Holdings is the direct sole owner of Buckeye Holdings and IWG is the direct sole owner of Class B Holdings. Invenergy Wind LLC indirectly holds 100% of the ownership interests in IWG. Invenergy Wind is an indirect, partially owned subsidiary of Invenergy Investment Co. LLC. Invenergy Investment indirectly owns the controlling interests in the following companies that are public utilities under the Federal Power Act and own or plan to own generation that is or will be located in the SPP market:

  • Prairie Breeze Wind Energy LLC owns and operates a 200.6 MW (nameplate) wind project located near Petersburg, Nebraska. The PB I Project is interconnected to the transmission system owned by Nebraska Public Power District (NPPD) and operated by SPP.
  • Prairie Breeze Energy II LLC is constructing and will own and operate an up to 73.39 MW (nameplate) wind project that will be located near Petersburg, Nebraska. The PB II Project will be interconnected with the transmission system owned by NPPD and operated by SPP. The PB II Project is estimated to begin generating test power in the future. PB II will sell electric energy, capacity and/or ancillary services at wholesale pursuant to its market-based rate tariff. PB II is an EWG.
  • Prairie Breeze Energy III LLC is developing and plans to construct, own and operate an approximately 35.92 MW wind project that will be located near Petersburg, Nebraska. PB III will sell electric energy, capacity and/or ancillary services from the PB III Project at wholesale. Tthe PB III Project will be interconnected with the transmission system owned by NPPD and operated by SPP. The PB III Project has not begun operations and is estimated to begin test power operations in the future. PB III will sell electric energy, capacity and/or ancillary services at wholesale pursuant to its market-based rate tariff. The Commission has granted PB III market-based rate authority. PB III is an EWG.

EFSR is an indirect, wholly-owned subsidiary of General Electric (NYSE: GE). Through its subsidiaries, GE is a passive owner of, and investor in, a number of generating facilities in the United States.

JPMCC is an indirect, wholly-owned subsidiary of JPMorgan Chase & Co., an international financial services company.

HA INV will be an indirect wholly owned subsidiary of Hannon Armstrong Capital LLC (HA Capital LLC), which is a wholly-owned subsidiary of Hannon Armstrong Sustainable Infrastructure LP (Hannon LP”). Hannon LP is owned 98% by Hannon Armstrong Sustainable Infrastructure Capital Inc. and 2% by various individuals and investment funds.

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.