The Federal Energy Regulatory Commission on Sept. 29 approved an Aug. 27 application from RET Modesto Solar LLC (RET Solar) requesting authorization for the acquisition by Capital One N.A. or one of its affiliates of 100% of the Class A membership interests in RET Modesto Holdings LLC, the parent company of RET Solar.
RET Solar’s sole business is to own, maintain and operate the Modesto Solar Facility, a 25-MW solar photovoltaic facility located in Modesto, California that was placed in service in 2012. RET Solar has received authorization to sell energy, capacity, and ancillary services at market-based rates. The Modesto Solar Facility is a qualifying small power production facility under the Public Utility Regulatory Policies Act (PURPA) of 1978, and is located in the Balancing Authority of Northern California (BANC) balancing authority area.
RET Solar currently sells all of the power produced by the Modesto Solar Facility under a 25-year contract to the Modesto Irrigation District, a utility that provides electric service, irrigation water and treats surface water for drinking. The Modesto Solar Facility is interconnected to a 69-kV sub-transmission line owned by the Modesto Irrigation District.
RET Modesto Holdings owns 100% of the membership interests in RET Solar. RET Modesto Holdings is a wholly owned subsidiary of RET Holdings (RETH), which was formed for the purpose of owning or developing renewable projects throughout North America. RETH is a wholly owned subsidiary of Renewable Energy Trust Capital Inc.
The buyer, Capital One, is based in McLean, Virginia, and provides a range of banking products and financial services to consumers, small businesses and commercial clients. Capital One is one of the principal subsidiaries of Capital One Financial Corp. (COFC). COFC and its subsidiaries are not primarily engaged in energy-related business activities and do not directly own or control any electric generating or transmission assets or generation output.