The Federal Energy Regulatory Commission on Sept. 10 approved a July 1 application from SEP II LLC for authorization for the disposition of jurisdictional facilities resulting from the transfer of undivided interests in certain generator interconnection facilities to its affiliates, Mesquite Solar 2 LLC (MS2) and Mesquite Solar 3 LLC (MS3).
The jurisdictional facilities affected consist of: a 34.5/230 kV collector substation and 230 kV generation-tie line approximately four miles in length (Mesquite Solar Generator-tie Facilities); and a 230/500 kV switchyard and associated facilities (Shared Switchyard Facilities).
SEP II is a wholly owned indirect subsidiary of Sempra Energy (NYSE: SRE), a public utility holding company based in San Diego, California. SEP II owns an undivided interest in the interconnection facilities, which are located in Maricopa County, Arizona. In addition to the interconnection facilities, SEP II holds real estate interests and permits associated with future development of solar photovoltaic generation near the Hassayampa switchyard.
MS2 and MS3 are wholly owned indirect subsidiaries of Sempra Energy.
- MS2 intends to construct, own and operate a 100-MW solar photovoltaic facility that will be interconnected at the Hassayampa Switchyard.
- MS3 intends to construct, own and operate a 150-MW solar photovoltaic facility that will also be interconnected at the Hassayampa switchyard.
SEP II will transfer an undivided interest in the interconnection facilities directly to MS2 and MS3. At that point, SEP II, Mesquite Solar 1 LLC, MS2, MS3, Mesquite Power LLC and the Salt River Project will each own a joint undivided interest in the shared switchyard facilities as tenants-in-common; and SEP II, Mesquite Solar 1, MS2, and MS3 will each own a joint undivided interest in the Mesquite Solar Generator-tie Facilities as tenants-in-common. The Mesquite Solar 1 facility went into service in 2011.
Sempra Energy (NYSE: SRE) reported in its Aug. 4 quarterly Form 10-Q filing that Mesquite Solar is a photovoltaic facility under development in Maricopa County, Arizona. If fully developed, the project will be capable of producing up to about 700 MW, with 150 MW currently in operation in a joint venture with Con Edison Development. In June 2015, Sempra Renewables signed a 20-year power sale agreement with Southern California Edison for 100 MW of solar power from the second phase of Mesquite Solar. The power sale agreement is subject to approval by the California Public Utilities Commission. In July 2015, Sempra Renewables signed a 25-year power sale agreement with the Western Area Power Administration for 150 MW from the third phase of Mesquite Solar. Sempra said it expects the second and third phases of Mesquite Solar to be in service in 2016.