On June 7, the Federal Energy Regulatory Commission approved a May 3 application from Parrey LLC for an approval for Southern Renewable Partnerships LLC to acquire from SunPower Corp. 51% of certain indirect equity interests, representing 100% of the Class A membership interests, in Parrey.
Parrey is an indirect, wholly owned subsidiary of SunPower formed for the purpose of developing, constructing, owning, and operating the Henrietta Solar Project. The Henrietta Project includes a 102-MW solar photovoltaic facility located in Kings County, California, within the California Independent System Operator (CAISO) market, and interconnecting transmission facilities necessary to connect the Henrietta Facility to the Pacific Gas and Electric (PG&E) transmission system. The Henrietta Project is expected to commence commercial operation in October 2016.
The net output of the Henrietta Project will be sold under a 20-year power purchasee agreement (PPA) with PG&E.
SunPower is a solar products and services company headquartered in San Jose, California.
The buyer, Southern Renewable Partnerships, is a wholly owned subsidiary of Southern Power, which is part of Southern Co. (NYSE: SO). Southern Power directly and indirectly owns or controls approximately 8,821 MW of generating capacity, including approximately 990 MW in the CAISO market and first-tier markets. Applicant represents that Southern Renewable Partnerships also holds ownership interests in several entities that own or will own generating facilities in the CAISO market and the Imperial Irrigation District balancing authority area, a first tier market to CAISO.
SunPower will form a holding company (HoldCo) to own 100% of Parrey. Southern Renewable Partnerships will then acquire all of the Class A membership interests in HoldCo. Applicant states that concurrently with the transfer of the Class A membership interests to Southern Renewable Partnerships, 100% of the Class B membership interests in HoldCo will be retained by SunPower. The Class B membership interests will be non-controlling economic interests in HoldCo that will convey no direct or indirect operational control over Parrey LLC.
