The Federal Energy Regulatory Commission on Nov. 8 approved a Sept. 15 application from Entergy Services Inc. and Shell WindEnergy Inc., on behalf of their affiliates Llano Estacado Wind LLC and Northern Iowa Windpower LLC, for a change in upstream ownership and control of the applicants.
Specifically, Entergy Corp. (NYSE: ETR) and Shell Wind, each of which indirectly own 50% of the applicants, will sell all of their indirect equity interests in the applicants to an unaffiliated purchaser, Blue Marlin Energy Holdings LLC.
Llano Estacado is directly owned by Top Deer Wind Ventures LLC. Llano Estacado owns an approximately 80-MW wind generating facility in Carson County, Texas, and makes wholesale sales of renewable energy and related renewable energy credits. The Llano Estacado Facility is interconnected with the transmission system operated by the Southwest Power Pool (SPP). Llano Estacado sells at wholesale the entire energy output of its facility, together with associated renewable energy credits, to Southwestern Public Service (SPS) under a long-term contract with a term through Dec. 31, 2016.
Northern Iowa is directly owned by Top Deer Wind. Northern Iowa owns an 80-MW wind facility located in Worth County, Iowa, and makes wholesale sales of renewable energy and related renewable energy credits. The Northern Iowa Facility is interconnected with the transmission system operated by the Midcontinent Independent System Operator (MISO). Northern Iowa sells at wholesale 20 MW of the energy output of its facility, together with associated renewable energy credits, to Alliant Energy under a long-term contract with a term through November 2016. Northern Iowa sells the remaining 60 MW of energy output at wholesale in the MISO day-ahead and real-time energy markets. It sells the renewable energy credits associated with such energy in the secondary markets.
Entergy Corp. is a holding company that indirectly owns a 50% equity interest in Top Deer Wind through its indirect subsidiaries Entergy Gas Power Operations LLC (EP Gas Operations), which owns 1% of Top Deer Wind, and EWO Wind II LLC (EWO Wind II), which owns 49% of Top Deer Wind. The remaining 50% of Top Deer Wind is owned by Shell Wind, a subsidiary of Shell Oil.
Blue Marlin is an indirect wholly-owned subsidiary of Olympus Power LLC, which is a privately-owned independent power company in the United States. Olympus owns and operates power projects and provides operating and maintenance services to its own projects and third party facilities. Olympus currently does not own or control any generation facilities located in the SPP.
Pursuant to a Purchase Agreement, EP Gas Operations, EWO Wind II and Shell Wind will sell their membership interest in Top Deer Wind to Blue Marlin. Following this transaction, Top Deer Wind and the applicants will be wholly owned subsidiaries of Blue Marlin. The applicants will no longer be affiliated with Entergy Corp. and its affiliates or with Shell Wind or its affiliates.