The Federal Energy Regulatory Commission on Nov. 15 approved a Sept. 22 application from Drift Sand Wind Project LLC for authorization of the acquisition by Bankers Commercial Corp. and one or more unidentified investors of non-controlling, passive equity interests in Drift Sand.
FERC noted: “Drift Sand states that, although the Proposed Transaction may not require authorization under section 203(a)(1) of the FPA, it nevertheless asks the Commission to authorize the Proposed Transaction. This order authorizes the Proposed Transaction without making any determination of jurisdiction.”
Drift Sand is an exempt wholesale generator (EWG) and owns a 108.8-MW wind project currently under development and located in Grady, Oklahoma, within the Southwest Power Pool (SPP) market. Drift Sand expects the project to begin testing in late Fall 2016 and to commence commercial operation in November 2016. It will interconnect with the transmission system owned by AEP Oklahoma Transmission.
Drift Sand is committed to sell the full output of the Drift Sand Project under a 25-year power purchase agreement with Arkansas Electric Cooperative Corp. (AECC). Drift Sand will own no transmission facilities other than limited interconnection facilities needed to connect the Drift Sand Project with the SPP transmission system.
Bankers is a wholly owned, non-bank subsidiary of MUFG Americas Holdings Corp., a bank holding company that is headquartered in San Francisco, California. Drift Sand said that Bankers may seek additional unidentified investors to participate in this transaction as tax equity investors either at the closing of this transaction or for up to one year following the closing date of the transaction.
The members of Drift Sand are EFS Renewables Holdings LLC, which owns 65% of the Class A Membership Interests, and Enel Kansas LLC, which owns 35% of the Class A Membership Interests and is the managing member of Drift Sand with the sole authority to manage Drift Sand’s day to day operations.
- The Class A Membership Interests owned by EFS, which is a wholly owned, indirect subsidiary of General Electric (NYSE: GE), represent a passive investment that conveys only limited consent rights necessary to protect EFS’s investment in Drift Sand.
- Enel Kansas is a wholly owned subsidiary of Enel Green Power North America Inc., which is a wholly-owned subsidiary of Enel Green Power International BV, a company organized under the laws of the Netherlands.