FERC okays outside investors in three completed NextEra wind projects in Kansas

The Federal Energy Regulatory Commission on Dec. 2 approved an Oct. 7 application from Ninnescah Wind Energy LLC, Kingman Wind Energy I LLC and Kingman Wind Energy II LLC related to the sale of non-managing membership interests in the companies to BAL Investment & Advisory Inc. (BALIA) or an affiliate, and The Bank of New York Mellon or an affiliate.

These so-called “Class B Investors” will 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 application said all three of these projects may start producing test energy as early as Nov. 9, 2016.

  • Ninnescah will own and operate a 208-MW wind facility located in Pratt County, Kansas, within the Southwest Power Pool (SPP) market. Ninnescah is party to a generator interconnection agreement (GIA) with Westar Energy. Ninnescah has entered into a long-term power purchase agreement (PPA) with Westar for 100% of the power produced. 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 103-MW wind facility in Kingman County, Kansas, within the SPP market. The Kingman I Facility will interconnect with Westar under a GIA. Kingman I has entered into a long-term PPA with Westar for 100% of the power produced. Kingman I is a EWG and is authorized by the commission to sell power at market-based rates.
  • Kingman II will own and operate a 103-MW wind facility in Kingman County, Kansas, within the SPP market. The Kingman II Facility will interconnect with Westar under a GIA. Kingman II has entered into a long-term PPA with Westar for 100% of the power produced. Kingman II is a EWG and is authorized by the commission to sell power at market-based rates.

These project companies are each a wholly owned indirect subsidiary of Palomino. Palomino is a wholly owned indirect subsidiary NextEra Energy Resources LLC, which is part of NextEra Energy (NYSE: NEE). NextEra Energy Resources’ subsidiaries currently own and operate merchant generating facilities in 25 states and Canada, including in the SPP market, with a combined net generating capacity of over 20,000 MW.

BALIA is an indirect, wholly owned subsidiary of Bank of America Corp., a bank holding company and a financial holding company.

BNY Mellon is a bank, chartered in the state of New York. BNY Mellon is a wholly owned subsidiary of The Bank of New York Mellon Corp.

Under this now-approved transaction, Palomino will have managing Class A Membership Interests and non-managing Class B Membership Interests. The Class B Investors will acquire 100% of the Class B Membership Interests in Palomino in exchange for cash considerations, and NextEra Energy Resources will retain 100% of the Class A Membership Interests in Palomino.

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. 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. 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’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. This 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.