The Federal Energy Regulatory Commission on Aug. 19 approved a July 20 application from Western Antelope Dry Ranch LLC requesting authorization to transfer to JPM Capital Corp. (JPMCC) the non-controlling, passive Class A Units in SPW Solar Holdings 3 LLC (SPW3).
SPW Solar Managing Member 3 LLC (SPWSMM3), a direct, wholly owned subsidiary of FinCo 4, and JPMCC will each acquire indirect interests in Western Antelope. SPWSMM3, as Managing Member and acquirer of 100% of the controlling Class B Units in SPW3, will control Western Antelope on a day-to-day basis. JPMCC, as acquirer of 100% of the non-controlling, passive Class A Units in SPW3, will have only limited rights with respect to the actions of SPW3, such as consent rights necessary to protect its economic investment.
Western Antelope stated that this transaction will not result in a transfer of control over its jurisdictional facilities because Western Antelope will remain under the indirect control of FinCo 4 and SPW3, which will become an indirect subsidiary of FinCo4 through SPWSMM3.
Western Antelope is an exempt wholesale generator with market-based rate authorization. It owns a photovoltaic qualifying small power production facility (WADR Project), with a rating of approximately 10 MW, located in the City of Lancaster, Los Angeles County, California. It’s in the California Independent System Operator (CAISO) market.
Western Antelope expects to begin generating test power from the WADR Project in September 2016 and anticipates achieving commercial operation in October 2016. Western Antelope is committed to sell the entire output from the WADR Project under a 20-year power purchase agreement with the City of Lancaster.
JPMCC is an indirect, wholly owned subsidiary of JPMorgan Chase & Co., a financial holding company. JPMCC holds direct or indirect, passive, non-controlling interests in various companies that own and operate wind and solar generation facilities in the CAISO market, but these companies are not affiliates of JPMCC.