FERC okays NRG Renew buy of several SunEdison solar projects

The Federal Energy Regulatory Commission on Sept. 28 approved an Aug. 18 application from NRG Renew LLC related to the buy of several power projects in Utah from bankrupt developer SunEdison.

The application was from: NRG Renew; Four Brothers Holdings LLC, on behalf of its subsidiaries Enterprise Solar LLC, Escalante Solar I LLC, Escalante Solar II LLC and Escalante Solar III LLC; Granite Mountain Renewables LLC, on behalf of its subsidiaries Granite Mountain Solar East LLC and Granite Mountain Solar West LLC; and Iron Springs Renewables LLC, on behalf of its subsidiary Iron Springs Solar LLC.

NRG Renew, an affiliate of NRG Energy (NYSE: NRG), will indirectly acquire interests in Four Brothers Holdings, Granite Mountain Renewables and Iron Springs Renewables.

Enterprise, Escalante I, Escalante II, Escalante III, Granite Mountain East, Granite Mountain West and Iron Springs (called the “Project Companies”) are indirect, partially-owned subsidiaries of SunEdison. On April 21, SunEdison and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 at the U.S. Bankruptcy Court for the Southern District of New York.

  • Enterprise is constructing and will own and operate an 80-MW solar generation facility (Enterprise Facility) to be located in the Town of Newcastle, Iron County, Utah, within the PacifiCorp-East (PACE) balancing authority area (BAA). The entire output of the Enterprise Facility will be sold to a non-affiliate pursuant to a long-term power purchase agreement (PPA). Enterprise is an exempt wholesale generator (EWG) and is authorized to sell power at market-based rates. All of the membership interests of Enterprise are owned by Four Brothers Solar LLC. The Class A and Class B membership interests of Four Brothers Solar are owned by Four Brothers Holdings and Dominion Solar Projects III Inc. (DSP III). Four Brothers Holdings is controlled by SunEdison. DSP III is a wholly owned, indirect subsidiary of Dominion Resources (NYSE: D).
  • Escalante I is constructing and will own and operate an 80-MW solar facility (Escalante I Facility) to be located in the Town of Milford, Beaver County, Utah, within the PACE BAA. Escalante I is a party to a Shared Facilities Agreement (SFA) governing the use and cost for interconnection facilities jointly owned by Escalante I, Escalante II, and Escalante III. The entire output of the Escalante I Facility will be sold to a non-affiliate pursuant to a long-term PPA. All of the membership interests of Escalante I are owned by Four Brothers Solar. Escalante I is an EWG and is authorized to sell power at market-based rates.
  • Escalante II is constructing and will own and operate an 80-MW solar facility (Escalante II Facility) to be located in the Town of Milford, Beaver County, Utah, within the PACE BAA. Escalante II is a party to the SFA. The entire output of the Escalante II Facility will be sold to a non-affiliate pursuant to a long-term PPA. All of the membership interests of Escalante II are owned by Four Brothers Solar. Escalante II is an EWG and is authorized to sell power at market-based rates.
  • Escalante III is constructing and will own and operate an 80-MW solar facility (Escalante III Facility) to be located in the Town of Milford, Beaver County, Utah, within the PACE BAA. Escalante III is a party to the SFA. The entire output of the Escalante III Facility will be sold to a non-affiliate pursuant to a long term PPA. All of the membership interests of Escalante III are owned by Four Brothers Solar. Escalante III is an EWG and is authorized to sell power at market-based rates.
  • Granite Mountain East is constructing and will own and operate an 80-MW solar facility (Granite Mountain East Facility) to be located in the Town of Cedar City, Iron County, Utah, within the PACE BAA. The entire output of the Granite Mountain East Facility will be sold to a non-affiliate pursuant to a long term PPA. Granite Mountain East is an EWG and is authorized to sell power at market-based rates. All of the membership interests of Granite Mountain East are owned by Granite Mountain Holdings LLC. The Class A and Class B membership interests of Granite Mountain Holdings are owned by Granite Mountain Renewables and DSP III.
  • Granite Mountain West is constructing and will own and operate a 50-MW solar facility (Granite Mountain West Facility) to be located in the Town of Cedar City, Iron County, Utah, within the PACE BAA. The entire output of the Granite Mountain West Facility will be sold to a non-affiliate pursuant to a long term PPA. All of the membership interests of Granite Mountain West are owned by Granite Mountain Holdings. Granite Mountain West is an EWG and is authorized to sell power at market-based rates.
  • Iron Springs is constructing and will own and operate an 80-MW solar facility (Iron Springs Facility) to be located in the Town of Cedar City, Iron County, Utah, within the PACE BAA. The entire output of the Irons Springs Facility will be sold to a non-affiliate pursuant to a long-term PPA. Iron Springs is an EWG and is authorized to sell power at market-based rates. All of the membership interests of Iron Springs are owned by Iron Springs Holdings LLC. The Class A and Class B membership interests of Iron Springs Holdings are owned by SunEdison’s Iron Springs Renewables and Dominion’s DSP III.

All of the membership interests of NRG Renew are owned by NRG Renewables LLC, all of whose membership interests are owned by NRG Repowering Holdings LLC. All of the membership interests of Repowering Holdings are owned by NRG Energy, which owns or controls approximately 50,000 MW of electric generating capacity throughout the United States.

Pursuant to a Purchase and Sale Agreement (PSA), NRG Renew will acquire all of the membership interests of Four Brothers Capital, Granite Mountain Capital and Iron Springs Capital and thereby acquire SunEdison’s indirect interests in the Project Companies. Consummation of the transaction is subject to approval of the Bankruptcy Court.

A judge at the Bankruptcy Court on Sept. 16 had issued a final written order approving the sale by SunEdison of a number of renewable energy projects to NRG Renew, including the ones covered by the Sept. 28 FERC approval.

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.