The Federal Energy Regulatory Commission on Dec. 13 approved a Nov. 7 application from Innovative Solar 43 LLC and Innovative Owner 43 LLC for authorization of the acquisition by Cypress Creek Holdings LLC of 100% of the outstanding common and preferred stock in FLS Energy Inc.
Upon consummation of this transaction, Cypress Holdings will acquire an indirect controlling interest in both applicants and, as a result, in a 38.9-MW photovoltaic facility currently under development.
Innovative Solar and Innovative Owner are affiliates and indirect subsidiaries of FLS Energy. FLS Energy, indirectly through its subsidiaries, owns and operates a portfolio of solar energy assets in North Carolina. Innovative Owner owns the project and Innovative Solar will operate the project, control all physical assets comprising the project, and sell all of the output of the project. The project is located within the Duke Energy Progress (DEP) balancing authority area (DEP BAA).
The applicants expected the project to begin generating test power in December 2016 and to commence commercial operation prior to Jan. 1, 2017. Innovative Solar is committed to sell the entire output from the project under a 10-year power purchase agreement with DEP. Innovative Solar is an exempt wholesale generator (EWG), with market-based rate authorization and has filed a notice of the project’s status as a qualifying small power production facility. Innovative Owner is also an EWG.
Cypress Holdings has its primary place of business in Santa Monica, California, and is engaged in the energy industry and in constructing renewable energy projects. Ownership of the renewable projects of Cypress Holdings is structured primarily through two subsidiaries, Cypress Creek Renewables LLC and Cypress Creek Power LLC and, through these subsidiaries, Cypress Holdings builds solar farms.
Upon consummation of this transaction, Cypress Holdings will own 100% of the outstanding common and preferred stock in FLS Energy and have the right, through FLS Energy, to control the applicants and their project on a day-to-day basis.
Marathon Capital LLC had announced Nov. 28 that solar power project developer FLS Energy is to be acquired by Cypress Creek. It said FLS is a leading owner, operator and financier of distributed generation solar projects and has developed more than 300 MW of projects across North Carolina and other Southeastern states. In addition to managing the company’s owned asset portfolios, FLS provides complete in-house EPC solutions for commercial-scale distributed generation and utility scale project development. The company’s growth and expansion was facilitated by a strategic investment from New Energy Capital.
Marathon Capital said it served as the exclusive financial advisor to FLS Energy and led a comprehensive market outreach initiative to identify a strategic partner for the FLS team. Cypress Creek’s long-term vision and established market penetration will be complementary to FLS’ business model, development expertise and robust pipeline, it added.