NextEra seeks okay for investors in three nearly-completed Kansas wind projects

Ninnescah Wind Energy LLC, Kingman Wind Energy I LLC and Kingman Wind Energy II LLC on Oct. 7 requested Federal Energy Regulatory Commission authorization in connection with the sale of certain indirect, non-managing interests in those companies to BAL Investment & Advisory Inc. (BALIA) or an affiliate, and The Bank of New York Mellon or an affiliate.

These two investors would acquire 100% of the Class B Membership Interests in Palomino Wind LLC, which will own 100% of the membership interests in Ninnescah, Kingman I and Kingman II. The Class B Membership Interests to be acquired are passive tax equity interests, and will not give the Investors a voice in the day-to-day public utility activities of the applicants except for those veto and consent rights necessary to allow Investors to protect their investment in the applicants.

The applicants requested that FERC provide for a 21-day comment period and issue an order approving the transaction no later than Nov. 28.

These projects are:

  • Ninnescah will own and operate a wind facility with a nameplate capacity of approximately 208.3 MW located in Pratt County, Kansas, within the Southwest Power Pool (SPP) balancing authority area (BAA). Ninnescah has a generator interconnection agreement (GIA) with Westar Energy. It may start producing test energy as early as Nov. 9, 2016. Ninnescah has entered into a long-term power purchase agreement (PPA) with Westar for 100% of the power produced by the Ninnescah Facility, including test energy. Ninnescah is an exempt wholesale generator (EWG), and is authorized by the commission to sell power at market-based rates.
  • Kingman I will own and operate a wind facility with a nameplate capacity of about 103.3 MW located in Kingman County, Kansas, within the SPP BAA. The Kingman I Facility will interconnect with Westar under a GIA, and may start producing test energy as early as early as Nov. 9, 2016. Kingman I has entered into a long-term power purchase agreement with Westar for 100% of the power produced by the Kingman I Facility, including test energy. Kingman I is an EWG and is authorized by the commission to sell power at market-based rates.
  • Kingman II will own and operate a wind facility with a nameplate capacity of approximately 103.3 MW located in Kingman County, Kansas, within the SPP BAA. The Kingman II Facility will interconnect through sharing of Kingman I’s GIA with Westar and SPP pursuant to a shared facilities agreement filed with the commission. It may start producing test energy as early as early as Nov. 9, 2016. Kingman II has entered into a long-term power purchase agreement with Westar for 100% of the power produced by the Kingman II Facility, including test energy. Kingman II is an EWG and is authorized by the commission to sell power at market-based rates.

These are project companies of NextEra Energy Resources LLC, which is a wholly-owned indirect subsidiary of NextEra Energy (NYSE: NEE).

The planned investors are:

  • BALIA, which is an indirect, wholly-owned subsidiary of Bank of America Corp., is a bank holding company and a financial holding company.
  • BNY Mellon, which is a New York state chartered bank and is a wholly owned subsidiary of The Bank of New York Mellon Corp.

The application said that NextEra affiliates with in-development projects in the SPP BAA include:

  • Brady Wind LLC, which will own and operate a 149.7 MW wind facility located in Stark County, North Dakota. Brady is authorized by the commission to sell power at market-based rates. All of Brady’s capacity is fully committed on a firm basis through a 30-year contract with Basin Electric Power Cooperative, with an initial term ending in 2046.
  • Brady Wind II LLC, which will own and operate a 149 MW wind facility located in Hettinger and Stark counties, North Dakota. Brady II is authorized by the commission to sell power at market-based rates. All of Brady II’s capacity is fully committed on a firm basis through a 30-year contract with Basin Electric Power Cooperative, with an initial term ending in 2046.
  • Osborn Wind Energy LLC, which will own and operate a 200.9 MW wind facility located in DeKalb County, Missouri. Osborn Wind is authorized by the commission to sell power at market-based rates. Osborn Wind’s capacity is fully committed pursuant to a PPA with a non-affiliate.
  • Rush Springs Wind Energy LLC, which will own and operate a 249.9 MW wind facility located in Grady and Stephens counties, Oklahoma. Rush Springs is authorized by the commission to sell power at market-based rates. Rush Spring’s Power is to be sold on a firm basis into the SPP market, with contract-for-differences with non-affiliates.
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.