On Sept. 22, the Federal Energy Regulatory Commission approved an Aug. 3 application from 87RL 8me LLC requesting commission authorization for the acquisition by SPW Solar Holdings 2 LLC (SPW2) of 100% of 87RL 8me’s membership interests from 8minuteenergy Saferay Holdings 1 LLC.
SPW Solar Managing Member 2 LLC (SPWSMM2) and JPM Capital Corp. (JPMCC) will each acquire indirect interests in 87RL 8me. SPWSMM2, as Managing Member and owner of 100% of the controlling Class B Units in SPW2, will have the right to control 87RL 8me on a day-to-day basis and JPMCC, as owner of 100% of the non-controlling, passive Class A Units in SPW2, will have only limited rights.
87RL 8me is an exempt wholesale generator, with market-based rate authority. 87RL 8me owns a 15-MW solar photovoltaic project (called the Woodmere Project) located in Kern County, California, within the California Independent System Operator (CAISO) market. 87RL 8me told FERC that it expected to begin testing the Woodmere Project in August 2015 and achieve commercial operation in September 2015.
87RL 8me is committed to sell the entire output from the Woodmere Project under a 20-year power purchase agreement with Pacific Gas and Electric.
87RL 8me is a wholly-owned subsidiary of Saferay, which in turn is an indirect, wholly owned subsidiary of Sustainable Power Group LLC (sPower), which itself is a wholly owned subsidiary of FTP Power LLC. After the closing of the transaction, FTP will continue to have control over 87RL 8me and the Woodmere Project due to its control over SPWSMM2.
JPMCC is an indirect, wholly owned subsidiary of JPMorgan Chase & Co., a financial holding company.
Incidentally, JPMorgan filed a Sept. 22 notice with FERC that JPM Capital has indirectly acquired substantially indirect, passive tax equity interests (the “Class A Membership Interests”) in SPW Solar Holdings 2 LLC. SPW2 owns 100% of the membership interests in 67RK 8me LLC, which in turn owns and operates an approximate 16.7-MW solar photovoltaic project located in Kern County, California (called the “Redcrest Project”). The Redcrest Project is located within CAISO’s Balancing Authority Area within the Southwest region.