Citigroup Renewable Investments 1 LLC and San Juan Mesa Wind Project LLC applied April 12 with the Federal Energy Regulatory Commission for authorization of a proposed transaction in which Citigroup Renewable will transfer its equity interests in San Juan Mesa to San Juan FinanceCo LLC.
Citigroup Renewable currently owns 25% of the equity interests in San Juan Mesa. San Juan Mesa is an exempt wholesale generator (EWG) that owns and operates an approximately 120 MW (nameplate rating) wind facility in Roosevelt and Chaves counties, New Mexico. The commission has authorized San Juan Mesa to sell energy, capacity, and certain ancillary services at market-based rates.
Its facility is interconnected with the Southwestern Public Service Co. (SPSC) transmission system within the Southwest Power Pool (SPP) Balancing Authority Area. All of the output from the facility currently is committed to SPSC under a long-term power purchase agreement.
The membership interests of San Juan Mesa are owned directly by: Citigroup Renewable (25%); and Mission Wind New Mexico LLC (75%). Mission Wind New Mexico are part of NRG Energy (NYSE: NRG) and NRG Yield.
Citigroup Renewable is an indirect, wholly owned subsidiary of Citigroup Inc. Citigroup Inc. is a global financial services company that provides a broad range of financial products and services to consumer and corporate customers.
The purchaser, San Juan FinanceCo, is 100% owned by Fengate San Juan Mesa LP, an Ontario limited partnership whose general partner is Fengate San Juan Mesa GP Inc., an Ontario corporation. Limited partnership interests in Fengate San Juan Mesa LP are held indirectly by several entities, including LiUNA Infrastructure Trust, which is funded by an investment by the Labour’s Pension Fund of Central and Eastern Canada, a union pension fund. Fengate San Juan Mesa GP Inc. is indirectly owned by each of Fengate LTI Management Inc. and Fengate Corp., each an Ontario corporation, which are owed by certain individuals and, in the case of Fengate LTI Management Inc., certain related family trusts. These “Fengate Entities” currently invest in and operate a diverse energy portfolio located in Canada, Australia, and the United Kingdom with an aggregate installed capacity of approximately 341 MW.
Under the proposed transaction, Citigroup Renewable will transfer all of its equity interests in San Juan Mesa to San Juan FinanceCo. After completion of the transaction, San Juan Mesa’s equity interests will be held by San Juan FinanceCo (25%) and Mission Wind New Mexico (75%).