NextEra seeks Texas approval for outside investment in Javelina Wind affiliate

Javelina Wind Energy Holdings LLC applied Feb. 5 with the Public Utility Commission of Texas for approval of a transaction in which it will issue passive Class B interests to JPM Capital Corp. (JPMCC) and Bankers Commercial Corp. (BCC).

The transaction is expected to close as soon as possible following commission approval, but on or before June 7, 2016. The company requested a final commission decision at the Open Meeting currently scheduled for May 5, 2016.

Javelina Holdings owns 100% of Javelina Wind Energy LLC, which owns, operates, and maintains a wind facility located in Webb County, Texas that has a nameplate capacity of 249.7 MW and is interconnected into the Electric Reliability Council of Texas (ERCOT). NextEra Energy Resources LLC indirectly owns 100% of the equity interests in Javelina Holdings. NextEra Energy Resources also indirectly owns equity interests in other generation facilities located in ERCOT. NextEra Energy Resources’ equity interests in generation capacity in ERCOT total approximately 3,146.56 MW.

Javelina Holdings intends to issue passive Class B interests to each of JPM and Bankers Commercial, while the equity interests indirectly held by NextEra Energy Resources will be the Class A managing interests.  As passive equity interest holders, these investors will have no management or control over Javelina Holdings.

The application said the combined ownership of applicant and its affiliates and upstream owners together with the investors and their respective affiliates will not exceed 20% of the installed capacity in ERCOT. Thus, the transaction will not result in a violation of the installed capacity share limitations of a state law. 

The Javelina Wind facility, incidentally, achieved commercial operation in December 2015. The filing noted that the affiliated Javelina Wind 2 facility in Texas, at 200 MW in size, is expected to achieve commercial operation in December 2016.

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.