The Federal Energy Regulatory Commission on May 24 approved an April 22 application from Greenleaf Energy Unit 1 LLC and Natgas Greenleaf Holdings LLC to allow Natgas Greenleaf Holdings to acquire from Greenleaf Energy Holdings LLC all of the interests in Greenleaf Unit 1 and Greenleaf Energy Unit 2 LLC.
- Greenleaf Unit 1 is an exempt wholesale generator with market-based rate authority. Greenleaf Unit 1 owns a 49.2-MW natural gas-fired facility located in Sutter County, California. The Greenleaf Unit 1 Project is interconnected to the transmission system of the California Independent System Operator.
- Greenleaf Unit 2 owns a 49.5-MW cogeneration facility also located in Sutter County, California, an also interconnected to the CAISO transmission system.
The output from each of Greenleaf Unit 1 Project and Greenleaf Unit 2 Project is fully committed under long-term power purchase agreements with Pacific Gas & Electric.
These Greenleaf companies are wholly owned by Greenleaf Energy Holdings. Greenleaf Energy Holdings also holds interests in trust in the Greenleaf companies as the Owner Participant to an August 1998 Trust Agreement with the U.S. National Bank Association. Greenleaf Energy Holdings is wholly owned by Greenleaf Power Management LLC which is wholly owned by FTI Consulting, a business advisory consulting company.
Natgas Greenleaf is an indirect wholly owned subsidiary of SEIF II U.S. Partnership Holdings II LLC, which is an indirect subsidiary of funds managed and controlled exclusively by Starwood Energy Group Global LLC (SEG). Through certain entities it controls, SEG is the sole manager of certain private equity funds that invest in power generation and transmission projects.
The just-approved transaction involves a purchase and sale agreement between Greenleaf Energy Holdings and Natgas Greenleaf. Under the agreement, Natgas Greenleaf will acquire from Greenleaf Energy Holdings all of the membership interests in the Greenleaf companies. Natgas Greenleaf will also acquire the interests held in trust by Greenleaf Holdings in the Greenleaf companies pursuant to the August 1998 Trust Agreement. As a result, Natgas Greenleaf will acquire 100% of the interests in each of the Greenleaf companies.