FERC okays sale of non-controlling share in Invenergy Wind

The Federal Energy Regulatory Commission on Sept. 23 approved a July 10 application from a long list of power project companies for approval of Leaf Invenergy Co. to acquire a passive, non-controlling, minority equity membership interest in Invenergy Wind LLC, which indirectly owns the controlling interests in the applicants.

The applicants stated that the proposed transaction may not require commission approval under section 203 of the Federal Power Act, however, out of an abundance of caution, they nevertheless ask the commission to authorize it. “This order authorizes the Proposed Transaction without making any determination of jurisdiction,” said the Sept. 23 FERC order.

Applicants are indirect wholly owned or partially owned subsidiaries of Invenergy Wind, which, in turn, is indirectly majority owned by Invenergy Investment Co. LLC. Invenergy Investment is wholly owned by Polsky Energy Investment LLC, which, in turn, is indirectly 98 percent owned and controlled by Michael Polsky. Invenergy Wind Holdings (IWH), a wholly owned subsidiary of Invenergy Investment, directly owns the controlling ownership and a majority equity interest in and is the managing member of Invenergy Wind. The remainder of Invenergy Wind is owned by Invenergy Wind Investment Corp. (IWIC), which holds a minor equity interest, and by Liberty Structured Holdings LLC (Liberty Holdings) and CDPQ Investments (U.S.) Inc. (CDPQ Investments), both of which hold passive and noncontrolling interests.

Applicants own and operate, or plan to construct, own and operate, generation facilities within the PJM Interconnection, Midcontinent Independent System Operator, New York Independent System Operator and Southwest Power Pool markets and the Tennessee Valley Authority, NorthWestern Corp., Puget Sound Energy, Public Service Company of Colorado, Bonneville Power Administration and PacifiCorp East balancing authority areas.

For example, within the PJM market, Beech Ridge Energy LLC, Beech Ridge Energy II LLC and Beech Ridge Energy Storage LLC own and operate, or plan to construct, own and operate, wind-powered facilities and energy storage devices to be located in Greenbrier and Nicholas counties, West Virginia with a cumulative capacity of 184.7 MW.

Grand Ridge Energy LLC, Grand Ridge Energy II LLC, Grand Ridge Energy III LLC, Grand Ridge Energy IV LLC, Grand Ridge Energy V LLC, and Grand Ridge Energy Storage LLC own and operate, or plan to construct, own and operate, wind generation facilities and energy storage devices to be located in LaSalle County, Illinois, with a cumulative capacity of 242.4 MW.

Within the MISO market, Bishop Hill Energy III LLC plans to construct, own and operate wind facilities to be located in Henry County, Illinois, and totaling a capacity of 136 MW. 

Within the SPP market, Buckeye Wind Energy LLC is constructing and will own and operate an up to 200.5 MW wind generation facility located near Ellis County, Kansas.

Prairie Breeze Wind Energy LLC, Prairie Breeze Wind Energy II LLC and Prairie Breeze Wind Energy III LLC own and operate, or are constructing and will own and operate, wind facilities located near Petersburg, Nebraska, with a cumulative capacity of 309.9 MW.

Leaf is a wholly owned subsidiary of Leaf Clean Energy Co. (Leaf Parent), a Cayman Islands exempt limited company that invests in private equity and debt of clean technology and renewable energy companies. Applicants assert that none of Leaf, Leaf Parent, and all affiliates of Leaf own or control any generation or transmission facilities, or facilities for the transportation or distribution of natural gas.

Under the proposed transaction, Leaf will acquire approximately 2.3% of the passive, non-controlling equity interests in Invenergy Wind via conversion of the entirety of its Series B-2 Notes to equity. The passive, non-controlling interests will not entitle Leaf to exercise day-to day management or control over Invenergy Wind or the applicants. Leaf will have only limited rights to protect its economic investments. IWH will continue to own the controlling and majority equity interests in Invenergy Wind and will continue as managing member of Invenergy Wind.

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.