The Federal Energy Regulatory Commission on Dec. 15 approved an Oct. 29 application from Sandstone Solar LLC covering the acquisition by WFS Solar Holdings 1 LLC (WFS Holdings) of 100% of the membership interests in Sandstone Solar.
Sandstone Solar owns and will operate an approximately 45-MW solar photovoltaic facility located in the Town of Florence, Arizona. The Sandstone Project is located within the Salt River Project Agricultural Improvement and Power District balancing authority area. The company expected to begin testing the Sandstone Project in November 2015 and to achieve commercial operation in December 2015.
The company is committed to sell the entire output from the Sandstone Project under a 21-year power purchase agreement with the Salt River Project. Sandstone Solar has submitted an application to the commission for authorization to make wholesale sales of electric energy, capacity, and ancillary services at market-based rates, and has filed a notice of self-certification of Exempt Wholesale Generator Status under the Public Utility Holding Company Act of 2005.
Sandstone Solar is a wholly owned subsidiary of Sustainable Power Group LLC (sPower), and sPower is a wholly owned subsidiary of FTP Power LLC.
The buyer, WFS Holdings, has a principal place of business in Salt Lake City, Utah. WFS Holdings currently has no assets. WFS Holdings’ principal business will be: through its proposed ownership interest in the applicant, indirectly owning and operating the Sandstone Project; and through its potential ownership interest in SEPV Mojave West LLC, an affiliate of the applicant that indirectly owns and will operate a 20-MW (ac) solar photovoltaic facility currently under development in Kern County, California.
WFS Managing Member LLC, a current affiliate of applicant, will hold 100% of WFS Holdings’ controlling Class B Interests and Wells Fargo Wind Holdings LLC (WFW Holdings) will own 100% of WFS Holdings’ non-controlling, passive Class A Interests.
WFS Managing Member is a wholly owned subsidiary of sPower FinCo 3 LLC. At the time of closing of the approved transaction, WFS Managing Member will be the Managing Member of WFS Holdings and, as such, WFS Managing Member will have the right to control WFS Holdings on a day-to-day basis. At the time of closing of the transaction, WFS Managing Member will be a wholly-owned subsidiary of applicant’s current owner, FinCo 3, a wholly owned indirect subsidiary of FTP Power.
WFW Holdings is a wholly-owned indirect subsidiary of Wells Fargo & Co., a financial holding company regulated by the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended.
In a quick turnaround, Sandstone Solar filed a Dec. 15 notice with the commission that the sale was completed that same day.