FERC okays passive investment in 150-MW Slate Creek wind farm in Kansas

On Aug. 8, the Federal Energy Regulatory Commission approved a June 30 application from Slate Creek Wind Project LLC for authorization for the acquisition of jurisdictional facilities.

Specifically, Axium Slate Creek LP will acquire from Slate Creek Wind Holdings LLC 50% of the Class B membership interests in Slate Creek Wind Project.

FERC noted: “Slate Creek states that the Proposed Transaction may not require Commission approval under section 203(a)(1); however, out of an abundance of caution, it nevertheless asks the Commission to authorize the Proposed Transaction. This order authorizes the Proposed Transaction without making any determination of jurisdiction.”

Slate Creek is an exempt wholesale generator with market-based rate authority. It owns and operates an approximately 150-MW wind facility located in Sumner and Cowley counties, Kansas. Output from the facility is sold under a long-term power purchase agreement. The facility is situated within the Southwest Power Pool (SPP) market.

Slate Creek Holdings holds 100% of the Class B membership interests in Slate Creek and, according to Slate Creek, is the manager member of Slate Creek. Slate Creek Holdings is indirectly owned by EDF Renewable Energy, a company that develops, builds, operates and manages renewable energy projects throughout North America. In addition to Slate Creek, within the SPP market, EDF-RE indirectly holds ownership interests in other entities that own and operate wind generating facilities with market-based rate authority. The entities, including Slate Creek, have a combined capacity of approximately 712 MW.

The general partner of Axium Slate Creek is Axium Slate Creek LLC, which is wholly owned by AxInfra US LP, an investment fund focused on infrastructure investments in the United States. Axium US Partner LLC is the general partner of AxInfra and Axium US Partner has delegated substantially all of its management rights and certain obligations under its partnership agreement to Axium Infrastructure US Inc.

Within the SPP market, Axium Slate Creek’s affiliate, Axium US Wind AcquisitionCo LLC, has a 49% passive Class A membership interest in certain entities that own wind facilities:

  • Blue Canyon V LLC, which owns and manages a 106 MW facility located in Comanche and Caddo counties, Oklahoma;
  • Cloud County Wind Farm LLC, which owns and manages a 201 MW facility located in Cloud County, Kansas;
  • Arbuckle Mountain Wind Farm LLC, which owns and manages an approximately 100 MW facility located in Murray and Carter counties, Oklahoma; and
  • Waverly Wind Farm LLC, which is constructing, and will own and manage, a 199 MW facility located in Coffey County, Kansas.

Each of these entities has market-based rate authority. Output from each of the facilities is committed under long-term power purchase agreements.

The now-approved transaction involves a purchase and sale agreement between Slate Creek Holdings and Axium Slate Creek. Axium Slate Creek will acquire from Slate Creek Holdings 50% of the Class B membership interests, which will be passive and non-managing, in Slate Creek. Slate Creek Holdings will continue to be the managing member of Slate Creek. Thus, EDF-RE will continue to indirectly control the day-to-day operations of Slate Creek.

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.