FERC okays SunEdison buy of three wind farms from Invenergy

SunEdison (NYSE: SUNE) won an Oct. 29 approval from the Federal Energy Regulatory Commission for a buy of three wind farm interests from Invenergy Wind LLC.

On Sept. 11, Bishop Hill Energy LLC (Bishop Hill I), California Ridge Wind Energy LLC and Prairie Breeze Wind Energy LLC (Prairie Breeze I) filed an application covering this complex deal. They are to be acquired by an indirect subsidiary of SunEdison from Invenergy Wind Global LLC.

  • Bishop Hill I owns and operates a 214-MW wind facility (BH I Project) located in Henry County, Illinois, together with limited interconnection facilities that connect the BH I Project to the transmission system owned by Commonwealth Edison and controlled by PJM Interconnection. Bishop Hill I has entered into a long-term power sale agreement, pursuant to which it sells all of the power produced by the BH I Project to the Tennessee Valley Authority (TVA).
  • California Ridge owns and operates a 217.08 MW wind project (California Ridge Project) located in Vermilion and Champaign counties, Illinois. The California Ridge Project includes limited interconnection facilities that connect it to the transmission system owned by Ameren Illinois Co. and operated by the Midcontinent Independent System Operator. California Ridge has entered into a long-term power sale agreement pursuant to which it sells all of the power produced by the California Ridge Project up to 200 MW to TVA. Power above 200 MW that may be produced by the California Ridge Project is sold into the MISO market.
  • Prairie Breeze I owns and operates a 200.6 MW wind project (PB I Project) located near Petersburg, Nebraska. Prairie Breeze I owns and operates limited interconnection facilities to connect its project to the transmission system owned by the Nebraska Public Power District and operated by the Southwest Power Pool. Prairie Breeze I entered into a long-term power sale agreement pursuant to which it sells all of the power produced by the project to the Omaha Public Power District.

The applicants told FERC that each of the buyers is, or will be prior to closing of this transaction, an indirect subsidiary of SunEdison.

TerraForm Power (Nasdaq: TERP) and SunEdison on July 6 had announced that TerraForm Power has signed a definitive agreement to acquire net ownership of 930 MW of wind plants from Invenergy Wind LLC, the largest independent wind owner in the United States. This acquisition is expected to add a sizeable, high-quality contracted power plant portfolio to the TerraForm Power and SunEdison family of companies. The three wind farms that are covered by the Oct. 29 FERC approval are part of that broader deal.

“TerraForm Power continues to transform the energy landscape with our acquisition of Invenergy’s wind power portfolio,” said Carlos Domenech, TerraForm Power’s chief executive officer. “This transaction is expected to be immediately accretive to our shareholders, extend the visibility of our growth trajectory and unlock significant value as we aggregate a highly fragmented industry. Our ongoing partnership with Invenergy, the country’s leading independent wind owner and developer, provides further opportunities for collaboration, asset drop downs and dividend growth.” 

TerraForm Power intends to acquire net ownership of 460 MW of the wind power plants from Invenergy with the remaining 470 MW to be acquired by a new warehouse facility, for a combined $2.0 billion in aggregate consideration. The acquired portfolio is comprised of seven contracted wind farms located in the United States and Canada.

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.