The Federal Energy Regulatory Commission on Nov. 18 approved an Oct. 7 application from New Creek Wind LLC for authorization for Mid-American Wind Tax Equity Holdings LLC to acquire 100% of the passive Class A tax equity membership interests in New Creek Wind’s direct parent, Enbridge Holdings (New Creek) LLC.
FERC noted: “New Creek Wind states that the Proposed Transaction may not require authorization 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.”
New Creek Wind is an exempt wholesale generator with market-based rate authority. It is constructing, and will own and operate, a 102.5-MW wind facility in Grant County, West Virginia. This facility is situated within the PJM Interconnection market.
New Creek Wind is a direct, wholly owned subsidiary of Enbridge Holdings whose upstream corporate parent is Enbridge Inc., a publicly traded corporation organized under the laws of Canada.
MidAmerican Wind Tax Equity is an indirect, wholly owned subsidiary of Berkshire Hathaway Energy Co. (BHE). BHE, in turn, is a consolidated subsidiary of Berkshire Hathaway Inc.
The now-approved transaction involves an equity capital contribution agreement between Enbridge’s subsidiary Enbridge Holdings (Green Energy) LLC, Enbridge Holdings and MidAmerican Wind Tax Equity. MidAmerican Wind Tax Equity will acquire 100% of the passive Class A tax equity interests in Enbridge Holdings, and, indirectly, New Creek Wind. Enbridge, through its indirect subsidiary Enbridge Investment (New Creek) LLC, will own 100% of the Class B interests in Enbridge Holdings, which, according to New Creek Wind, are controlling and managing. New Creek Wind thus asserts that Enbridge will indirectly have full control over the day-to-day operation of New Creek Wind and its wind facility in West Virginia.
FERC on Sept. 20 had accepted an Aug. 3 application by New Creek Wind LLC for authorization to make wholesale sales of electric capacity, energy, and ancillary services at market-based rates. The company said in that docket that the project was expected to generate test power starting in October 2016 and to reach commercial operation by late December 2016.
The project is comprised of forty-nine Gamesa wind turbine generators and related real property, as well as other equipment necessary to interconnect it to Virginia Electric and Power‘s new Bismark 500 kV switching station on the existing Mount Storm – Doubs 500-kV transmission line.