Invenergy Wind project companies seek FERC okay on ownership change

A long list of project companies applied April 19 at the Federal Energy Regulatory Commission for approval of a transaction where CDPQ Investments (U.S.) Inc. (CDPQ Investments) will acquire from Invenergy Wind Holdings LLC (IWH) a small amount (i.e., 3%) of additional equity interests in Invenergy Wind LLC.

This would slightly increase the CDPQ Investments passive, non-controlling, minority equity membership interests in Invenergy Wind, and would slightly decrease IWH’s equity ownership interests in Invenergy Wind but IWH would continue to own the controlling interests in Invenergy Wind.

The applicant companies requested a notice period of no longer than 21 days, expedited treatment of this application, and a commission order issued by May 19 to accommodate closing of the transaction as soon as possible thereafter.

Here is a list of only the applicants that are still developing their projects:

  • Beech Ridge Enerrgy II LLC is developing and plans to construct, own and operate wind facilities of up to 52.5 MW (nameplate) that will be located in Greenbrier and Nicholas counties, West Virginia. The BR II Project will be interconnected with the transmission system owned by Allegheny Power, and controlled by PJM Interconnection. BR II will sell electric energy, capacity and/or ancillary services from the BR II Project at wholesale. The commission has granted BR II market-based rate authority. BR II is an EWG. BR II is an indirect, wholly-owned subsidiary of Invenergy Wind.
  • Bethel Wind Farm LLC is developing and plans to construct, own and operate an approximately 276 MW (nameplate) wind project that will be located in Castro County, Texas. Bethel will sell electric energy, capacity and/or ancillary services from the Bethel Project at wholesale. Through interconnection facilities in which Bethel plans to own interests, the Bethel Project will be interconnected with the transmission system owned by Southwestern Public Service (SPS). SPS’s transmission system is operated by the Southwest Power Pool (SPP). The Bethel Project has not yet begun operations. Bethel has filed an application with the commission for market-based rate authority. Bethel is an EWG and an indirect, wholly-owned subsidiary of Invenergy Wind.
  • Bishop Hill Energy III LLC is developing and plans to construct, own and operate wind facilities consisting of up to 136 MW (nameplate) that will be located in Henry County, Illinois. BH III plans to interconnect the BH III Project to the transmission system owned by owned by Ameren Illinois and controlled by the Midcontinent Independent System Operator (MISO) through a generator-tie line and related radial interconnection facilities owned by Bishop Hill Interconnection LLC. The BH III Project has not yet been constructed. BH III will sell electric energy, capacity and/or ancillary services at wholesale pursuant to its market-based rate tariff. The commission has granted BH III market-based rate authority. BH III is an EWG. BH III is an indirect, wholly-owned subsidiary of Invenergy Wind.
  • Grand Ridge Energy V LLC is developing and plans to construct, own and operate wind facilities of up to 80 MW (nameplate) that will be located in LaSalle County, Illinois. The GR V Facility will be interconnected with the transmission system owned by Commonwealth Edison (ComEd), and controlled by PJM. The GR V Facility has not been built yet. GR V will sell electric energy, capacity and/or ancillary services at wholesale pursuant to its market-based rate tariff. The commission has granted GR V market-based rate authority. GR V is an EWG. GR V is an indirect, wholly-owned subsidiary of Invenergy Wind.
  • Peak View Wind Energy LLC is developing and plans to construct, own and operate an up to 60 MW (nameplate) wind project that will be located in Huerfano/Las Animas counties, Colorado. Through interconnection facilities in which Peak View plans to own interests, the Peak View Project will be interconnected to the transmission system owned by Black Hills/Colorado Electric Utility Co. LP. The Peak View Project will be located in the balancing authority area of the Public Service Co. of Colorado because it will be interconnected to transmission facilities owned by Black Hills that are located in the Public Service Co. of Colorado (PSCo) balancing authority area. Peak View will sell electric energy, capacity and/or ancillary services from the Peak View Project at wholesale. On April 14, Peak View filed an application with the commission requesting market-based rate authority to sell energy, capacity and ancillary services. On April 14, Peak View also filed an EWG notice of self-certification. Peak View is an indirect, wholly-owned subsidiary of Invenergy Wind.

In addition to the applicants, at the time of filing of this application, Invenergy Wind indirectly owns the controlling interests in other companies that are EWGs and own operating wind generation facilities and related interconnection facilities, or are constructing such facilities that may become operational by the time the proposed transaction closes. These companies are not public utilities under the Federal Power Act because they sell, or will sell power, solely within the Electric Reliability Council of Texas (ERCOT). Two of those companies have in-development projects:

  • Gunsight Mountain Wind Energy LLC is constructing and will own and operates an approximately 119.93 MW wind facility located in Howard County, Texas. Gunsight will sell electric energy, capacity and ancillary services produced from the Gunsight Facility exclusively at wholesale within the ERCOT market. The interconnection facilities that Gunsight will own will connect to the transmission system owned by Oncor Electric Delivery Co. LLC. Gunsight is an EWG.
  • Wake Wind Energy LLC is constructing and will own and operates an approximately 257.25 MW wind facility located in Crosby, Floyd and Dickens counties, Texas. Wake will sell electric energy, capacity and ancillary services produced from the Wake Facility exclusively at wholesale within the ERCOT market. The interconnection facilities that Wake will own will connect to the transmission system owned by Wind Energy Transmission Texas LLC. Wake is an EWG.

The prospective buyer of this additional equity stake, CDPQ Investments, is a wholly-owned subsidiary of Caisse de dépôt et placement du Québec, which was founded in 1965 by an act of the National Assembly of Canada and is organized under the laws of Québec. It manages public and private pension funds in the Province of Québec.

IWH currently owns 56.77% of the equity interests and the controlling interests in Invenergy Wind, while CDPQ Investments owns a 24.09% minority passive, non-controlling equity interest in Invenergy Wind that is not considered to be voting securities. IWH plans to sell 3% of its membership interests in Invenergy Wind to CDPQ Investments so that when the proposed transaction closes, IWH’s equity ownership interest in Invenergy Wind will slightly decrease by 3% and CDPQ Investments’ passive equity interests in Invenergy Wind will slightly increase by 3% from 24.09% to 27.09%.

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.